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Speculation Over Sinai's
Future Continues
KIMBERLY LIFTON
Staff Writer
S
inai Hospital admin-
istrators remain tight-
lipped amid specula-
tion that the institution is
facing mounting financial
trouble.
At the annual meeting a
few weeks ago, the hospital
released an optimistic finan-
cial report, which indicated
only that the hospital's
assets were $69 million
greater than its liabilities.
Yet health care analysts
on Wall Street said such fig-
ures do not represent the
current financial picture. In
the past two years, Sinai,
which once enjoyed a
favorable. A + rating by the
Standard and Poors index,
dropped to an A -.
"The rating has dropped,"
said S & P anaylst Dave
Hospital
spokesmen refuse
to discuss the
rumors.
Teknay. "The situation is
not as good."
Sinai's problems fit a
growing trend among
southeast Michigan
hospitals strapped with de-
teriorating profits. Mr.
Teknay said Detroit is a very
competitive city for the
health care industry with
too many beds and not
enough patients to fill them.
On the average day, Sinai
fills 350 of its 620 beds, rais-
ing concerns that the
hospital just doesn't have
enough business.
In the past decade,
hospitals have been plagued
by insufficient funds from
Medicaid and Medicare
reimbursements, part of the
reason health costs to the
consumer have soared.
An August 1988 Credit
Week report stated that
Sinai's rating dropped due to
"declining financial perfor-
mance."
Standard and Poors credit
raters are scheduled to re-
view Sinai's financial pic-
ture early next year.
Hospital President Robert
Steinberg spoke few words
at the annual meeting and
has since only confirmed
that the hospital is negotia-
ting a possible affiliation
with the Detroit Medical
Center. The hospital began
merger talks with DMC
after negotiations in July
with the giant Henry Ford
Health Care Corp. were
terminated.
Administrators would
neither confirm nor deny
reports that Sinai is trying
to make itself saleable to the
DMC by merging into one of
DMC's smaller facilities in
the suburbs, Huron Valley
Hospital in Milford. The 150-
bed facility has been having
trouble filling its beds.
Neither hospital would
release details of any merger
talks. Karen Hryciuk, media
coordinator for Sinai, said
talks were ongoing. She said
the administration believes
it is in the best interest of
the hospital not to release
any information.
Most department heads
and staff physicians declined
to comment on the record.
Several reiterated concerns
that the hospital would
close. Others discussed fears
that staffs would be trimmed
and that non-profitable
departments would be cut.
The end result, they said,
could be a much smaller
Sinai Health Services.
One doctor said he was
taking his business to
Beaumont Hospital, where
the future was more certain.
And another doctor said
several colleagues agreed
that Sinai would be wise to
merge with Huron Valley,
located 10 minutes nor-
thwest of West Bloomfield,
where many Sinai-affiliated
physicians practice.
Other options to be con-
sidered are trimming
department cuts. "Sinai is a
system that will always be
alive," said Janice Malach,
director of ambulatory - ser-
vices.
Meanwhile, Donald Potter,
president of the Southeast
Michigan Hospital Council,
said Sinai is solvent and
"right on the mark."
Mr. Potter said Sinai has
prepared quietly and aggres-
sively with the develop-
ment of its new outpatient
centers.
"Sinai is looking ahead,"
he said. "That is refreshing.
You don't need to have
hospital beds to serve a
community.
"I still see Sinai as part of
the health care family," Mr.
Potter said. "Anyone who
would suggest they are a
sinking ship is probably a
cynic. I don't see the hospital
closing anytime soon. It is
still stable, with a decently
insured population." ❑
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in IsraeL
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Please make checks payable tb:
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THE DETROIT JEWISH NEWS
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