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Published on : Sep 14, 2012

The healthcare Industry in the United States works as a separate entity and many of the healthcare services are privately owned and operated. Healthcare has always been a topic of debate for the U.S. government because policy makers argue that the system is not delivering value for money services. In fact government is spending twice as much on life expectancy and infant mortality rate measures.

The Massachusetts healthcare system has posted a huge financial loss in the fiscal year 2011. These losses were related to the community hospitals and urban safety hospitals because they cater to the group of low income patients. In 2010, the health care industry losses were worse than the year 2009 with 16 hospitals running in loss out of which 13 remained unprofitable.

The health care industry did not improve in 2011 as well and about 65 hospitals faced fall in profit margins compared to the previous year from 2.6 percent to 2.1 percent. The healthcare system had already started to feel the rapid changes in the cost of medical care even before the Massachusetts government issued a law regarding increase in medical costs.

Some other institutions which suffered a huge loss included Boston Medical Centre and Cambridge Health Alliance because they are wholly dependent on government funding, as they cater to the middle class and lower income groups.