Hospital Council of Western Pennsylvania

Hospitals in western Pennsylvania are warning that their operating margins are shrinking sharply, and that’s not counting the impact of the sequester from a 2 percent reduction from Medicare.

Denis Lukes, vice president at the Hospital Council of Western Pennsylvania, said operating margins at the trade association's 56 member hospitals dropped by more than half from a year ago. That coupled with possible cuts to government reimbursement leads to a “perfect storm.”