AMH's revival effort is just getting started

Monday, February 12, 2007 10:10 AM EST

In many ways, Auburn Memorial Hospital today is in much better shape than it was last year at this time.
The facility reported an operating loss in 2006, after removing what should be one-time costs associated with its turnaround efforts, of $1 million. That's a solid improvement over 2005, when losses exceeded $5 million. Projections show 2007 should be a break-even year.

The hospital has also received some substantial outside support, in the form of millions of dollars in state grants and community donations, over the past year.

And AMH dodged a bullet when a state panel formed to recommend closures of struggling hospitals spared Auburn from the list after it was originally one of the facilities targeted.

Those are all good signs, but as news that emerged last week shows, AMH still has some major problems to solve.

The federal agency that guarantees pension funds filed a new lien against the hospital, which is now nearly $14 million behind in contributions to its plans. AMH officials are trying to work out a payment solution with the government, which is crucial. At a time when AMH is trying to recruit physicians and bolster its reputation, it cannot afford to have its pension plan taken over by the government.

The hospital also got some potentially bad news in President Bush's budget proposal, where cuts in Medicare could cost AMH $3 million, according to U.S. Sen. Charles Schumer.

We hope federal officials, most notably new U.S. Rep. Michael Arcuri, work on behalf of AMH to resolve the pension and Medicare problems.

These items are reminders that this hospital will continue to need major support from the community and from elected officials if the turnaround is to happen. The AMH rebound is a long-term process that in reality is just getting started.

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There are 1 comment(s)

AJ wrote on Feb 12, 2007 2:04 PM:

" Isn't Bush just swell? Better to spend that money with Haliburton, Bechtel, and merchants of death on an illegal war than people who really need it to stay alive. Some compassionate conservative he is, eh? "

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