California Hospitals Battle to Stay “On the Grid”
Tuesday, July 29th, 2008California hospitals will spend about $100 billion before 2013 in order to meet state seismic safety standards. On top of that, the nation-wide mortgage and credit crisis more or less doubles that $100 billion price tag in the event that these hospitals do not have the cash on hand. With construction expenses reaching an all-time high, a 100-bed hospital may spend close to $100 million to build a replacement facility. That same facility will be lucky to break $50 million in revenue (revenue, not profit) in any given year.
This incomprehensible financial dilemma, only five years away but the result of a shifting in the earth’s core somewhere around Northridge in January 1994, is yet another example of inconsistent public policy concerns converging in the health care sector. If this $100 billion expense was not bad enough, hospitals now face increasing pressure to be more “green”.
Caught in the middle of a financial crisis, a healthcare crisis, a gas crisis, an ever-present earthquake crisis, and now an environmental crisis, will tomorrow’s hospitals in California be yesterday’s 8-track tapes? While the ultimate fate of California’s hospitals has yet to be written, there are a handful of facilities throughout the state actually trying to be both seismically sound and green.


