Howard University Hospital lost $21 million in 2012, taking an enormous bite out of the budget surplus generated by the rest of the university, the Washington Business Journal reports.
In the latest report obtained by the Business Journal, the hospital is experiencing major financial problems due to several factors, including a drop in inpatient treatment and, most recently, reforms to payment programs by insurance companies and the federal government.
The Business Journal reports that insurance plans run by private agencies and the government both are not paying full rates for brief inpatient treatments; rather, they're insisting on paying outpatient rates.
Information about the hospital's massive losses come on the heels of a June report, in which a member of Howard's Board of Trustees said that the school was on the decline because of lower enrollment, the hospital's expenses and a downturn in fundraising.
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