The problems of the inner-city hospital markets are very different from those faced by their rural or suburban counterparts, and nowhere in the country are these problems more evident than in the Washington, D.C., hospital market. Two major issues appear to dominate the current fiscal crisis in the D.C. markets: excess bed capacity and declining net revenues. The purpose of this project is to identify and analyze the factors contributing to this crisis and explore the potential effects of the expected outcomes in the D.C. economy and patient access to care. Currently, occupancy rates in the D.C. hospital market average slightly more than 60 percent, with an estimated excess capacity of 23 percent of the current number of beds. This excess capacity reflects the declining demand for inner-city beds due to: general population outmigration to the suburbs; lower immigration of suburban patients; higher outmigration of D.C. patients to the suburbs; general declines in admission due to increased use of ambulatory care; and lower admission rates attributable to increased market penetration of managed care organizations.
Amount Awarded $150,000.00
Awarded on: 8/22/1995
Time frame: 9/1/1995 - 8/31/1998
Grant Number: 26208