From the Queens Tribune:
With another flu season looming, the viability of at least one “safety net” hospital is in danger. In a report to Trustees dated June 26, independent financial auditor PricewaterhouseCoopers wrote that “Jamaica [Hospital]’s recurring deficiencies […] raise substantial doubt about Jamaica’s ability to continue as a going concern.
“[...] Jamaica has recurring losses from operations, a working capital deficiency of $12,408,000 at December 31, 2008 and an unrestricted net deficit of $52,733,000.”
The report continues, “There can be no assurance that management’s plans will be sufficient or timely enough to generate sufficient cash to meet its operating needs and achieve financial stability for Jamaica.”
According to the audit, Medisys – which operates Jamaica Hospital and Flushing Hospital, two other hospitals and dozens of ambulatory care clinics – is also in trouble: “The consolidated financial statements of MediSys reflect a working capital deficiency and net deficit that raise substantial doubt about its ability to continue as a going concern.”
“This is on us,” said David Rosen, CEO and President of Medisys. “It puts us in an extremely compromised position, financially speaking.”
While repeated requests for an explanation of Jamaica’s yearly financial statements were not addressed by the hospital, the unpublicized audit confirms that the hospital’s finances are currently in dire straits and, according to hospital officials, this years’ flu season will only exacerbate the situation.
“The demographic in this service area is such that there is high percentage of uninsured patients and illegal immigrants who do not qualify for any coverage,” said Rosen. “This is particularly apparent in the ER.”