AS BOTTOM LINE IMPROVES, ST. LOUIS SYSTEM RESTARTING DEVELOPMENTS
By John Mugford
As the economy improves, there is speculation that quite a few hospitals and health systems will restart construction projects put on hold during the throes of the recession. An early example is St. Louis-based SSM Health Care, which saw its bottom line improve in 2009.
As a result, the system recently announced that in October it restarted a previously stalled project. It also plans to break ground on a previously delayed project in coming months and to begin the design process for a new hospital slated for a groundbreaking in 2012.
Like many health systems, SSM experienced significant losses from declining revenues and patient volumes in 2008. It also suffered quite a blow to its investment portfolio. For the first nine months of 2008, SSM experienced a loss in its return on investments of $181.5 million. Overall in the first three quarters of 2008, the system’s operating income was $15.7 million.
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