CHICAGO (Reuters) - Ohio hospitals are eyeing job and service cuts as well as delays in construction projects because unpaid care has soared due to the weak economy, according to survey results released on Monday.
Of the 110 hospitals that responded to the survey by the Ohio Hospital Association, 35 percent said they planned to lay off employees within six months while 42 percent have already frozen hiring or salaries. Construction projects, including emergency room improvements and operating room expansions, have been delayed or canceled by 29 percent of the hospitals over the past six months.
Charity care was up 41 percent and bad debt increased 50 percent at Ohio hospitals during the last eight months of 2008, according to the association.
The group said the financial plight of hospitals would worsen and lead to further cuts under the proposed two-year state budget.
In his fiscal 2010-2011 budget, Ohio Governor Ted Strickland proposed a new hospital franchise fee to increase the state's share of Medicaid funding.
Tiffany Himmelreich, a spokeswoman for the hospital association, said the fee would generate $598 million, but hospitals would only get a $187 million increase in Medicaid funds.
(Reporting by Karen Pierog; Editing by Leslie Adler)
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