Already a Bloomberg.com user?
Sign in with the same account.
PROVIDENCE, R.I. (AP) — Lifespan faces what it calls a significant budget shortfall and is seeking proposed cost-savings measures from management and employees that will help get the hospital group back on financial track.
Lifespan said in a statement Friday it has fallen "significantly below budget" in the first five months of the fiscal year, which began on Oct. 1. In a memo to employees, President and CEO Timothy Babineau attributed the shortfall to lower reimbursement rates, an increase in charity care, longer patient hospital stays and what he described as the "prolonged economic slump in Rhode Island."
Babineau also said increased competition from out-of-state providers has stymied growth opportunities and taken a financial toll.
Lifespan called it premature to discuss specific cuts but said they wouldn't affect quality of care or patient safety.