Hospitals' Financial Woes Cause Shake-Ups In Three Cities

The Wall Street Journal: "Some doctors from St. Vincent's Hospital in Manhattan fear they won't be covered for malpractice insurance for care they provided while on staff before the hospital's demise. They believe the failed institution has a legal obligation to continue to provide the coverage. The doctors fear they may have to buy their own medical malpractice coverage for the next several years, policies they say can cost $40,000 a year when purchased individually" (Sataline, 5/7).

The Boston Globe: "The private-equity firm proposing to purchase Boston's six Catholic hospitals intends to maintain the hospitals' religious identity, but has also negotiated an escape clause that would allow the firm to end the religious affiliation in exchange for a $25 million donation to charity." The holding company created by Cerberus Capital to manage the hospital could go secular if "complying with Catholic ethical guidelines for hospitals is 'materially burdensome'" in the firms view (Wangsness and Healy, 5/7).

The Wall Street Journal's Bankruptcy Beat Blog: "The financial woes that pushed a poverty-stricken Washington neighborhood's only general hospital into bankruptcy protection several years ago are rearing their head again, resulting in a battle for control of the facility. Washington officials are seeking a receiver to take control of the troubled United Medical Center, which the city took over last month to 'stabilize' after its owner defaulted on loans." The hospital was once known as Greater Southeast Community Hospital (Palank, 5/6).

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