Ad­vo­cate Health Care plans to cut $200 mil­lion in ex­penses as fi­nan­cial pres­sures mount.

Modern Healthcare - - LATE NEWS -

Jim Skogs­bergh, CEO of the Down­ers Grove, Ill.-based health sys­tem, in­sists the cuts aren't re­lated to Ad­vo­cate's lengthy bat­tle try­ing to merge with Evanston, Ill.based NorthShore Univer­sity HealthSys­tem. Ad­vo­cate spent $15 mil­lion in le­gal fees and other ex­penses re­lated to the merger, the sys­tem said. In­stead, the cuts are fu­eled by soar­ing debt from pa­tients who can't af­ford to pay their med­i­cal bills. Re­im­burse­ment rates from Med­i­caid and Medi­care don't cover how much it costs to treat pa­tients, while pay­ments from pri­vate in­sur­ers aren't mak­ing up the dif­fer­ence, Skogs­bergh said. The state of Illi­nois, which hasn't ap­proved a bud­get in nearly two years, also has not paid Ad­vo­cate and other providers.

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