Stanford Hospital and
Clinics Restructuring Fact Sheet
Stanford has a
world-class medical center, including two hospitals and a medical
school, but its mission is in jeopardy and the hospital's long-term
survival is at risk unless we stem the losses we are
- Stanford Hospital is one of
the top ten teaching hospitals in the country.
- Stanford Hospital performed
the world's first heart and lung transplant.
- Last year alone, Stanford
Medical School and the hospitals trained more than 2,000 medical
students, graduate students and post-doctoral trainees.
- Stanford currently has more
than 1,400 active, medical research projects.
- Without changes, Stanford
Hospital could lose up to $40 million this fiscal year and up to
$70 million next year.
- Government reimbursements
cover less than 50% of the hospitals' costs.
The health care system
is broken and Stanford's hospitals cannot continue to provide
services that we are not fairly compensated for.
- Two-thirds of California's
hospitals are losing money.
academic medical centers are affected, and some will merge or
declare bankruptcy in the next five years.
- Academic medical centers
provide nearly 40% of care for the nation's 44 million
1997 Balanced Budget Act cut the amounts the federal government
paid academic medical centers. At Stanford Hospital, this means an
$80 million drop in revenue in the past four years.
Stanford's hospitals are
not being paid the fair cost for the services we provide. To
balance the budget we must consider: 1) renegotiating or
exiting health plan contracts; 2) transferring some programs to
other providers; and 3) closing some money-losing
- Stanford Hospital is
currently being paid as little as 23 cents on the dollar by our
- Stanford Hospital provides
more than $25 million of unreimbursed care each year.
- This year alone, Stanford
Hospital faces a projected $40 million payment gap from Medicare
and Medi-Cal patients.