UMDNJ hospital losing millions per month

The University of Medicine and Dentistry of New Jersey might need to layoff
February 8, 2008 9:21:55 AM PST
The president of the University of Medicine and Dentistry of New Jersey said its hospital is hemorrhaging millions of dollars every month and layoffs could result. University Hospital's losses for the second half of last year were almost $32 million, president William F. Owen Jr. told The Star-Ledger of Newark for Friday's newspapers.

"We were not anticipating the sorts of financial hardships being described here," Owen told the newspaper. "It would be premature to make statements about what we are going to do, but it will involve very deliberate, very careful planning about what approaches are needed to mitigate this."

The 519-bed state-run hospital has more than 3,000 employees. Owen said he will conduct an assessment, but that layoffs would be an "absolute last resort."

While the hospital is state's the largest provider of charity care, Owen said it doesn't receive enough compensation. University Hospital provided $110 million in charity care last year; it was reimbursed $89.3 million in state money, he said.