Howard opens new buildings, reduces staff
Howard University is reforming its hospital while its rank as DC’s largest employer slips. These changes come as the university looks to improve its academic program and its finances.
Financial difficulty is nothing new for Howard. In 2013 we reported that sequestration had cut its annual appropriate from Congress, enrollment had dropped, and one of its Trustees publicly warned of the university’s financial straits. Later that year, Moody’s downgraded the university’s bond rating from A3 to Baa1 as the hospital ran a $21-million loss.
The university furloughed staff and cut positions, but last year Moody’s downgraded the university further from Baa1 to Baa3, citing the hospital’s losses, which had increased to $37 million.
Since then the university has hired Paladin, a healthcare management consultancy, to reverse the hospital’s losses. University President Wayne Frederick recently told the Washington Business Journal that the hospital has made progress, particularly in billing more efficiently. (The fee-for-service model may be lucrative for healthcare providers, but the Obama Administration is trying to move the country away from it.)
Last week the hospital announced it would lay off 25 management positions and look to reduce staff further.
Meanwhile the university and its hospital have slipped in their rankings as DC’s largest employers. Over the past ten years, the university fell from first to seventh while the hospital fell from seventh to fifteenth.
| Employer | 2004 Rank | 2014 Rank |
|---|---|---|
| Georgetown University | 3 | 1 |
| Washington Hospital Center | 4 | 2 |
| George Washington University | 2 | 3 |
| Children’s Hospital | 5 | 4 |
| American University | 8 | 5 |
| Georgetown University Hospital | 9 | 6 |
| Howard University | 1 | 7 |
| Fannie Mae | 6 | 8 |
| Booz Allen Hamilton Inc. | 113 | 9 |
| Allied Barton Security Services LLC | – | 10 |
| Red Coats | 40 | 11 |
| Providence Hospital | 10 | 12 |
| George Washington University Hospital | 18 | 13 |
| Sibley Memorial Hospital | 13 | 14 |
| Howard University Hospital | 7 | 15 |
But the outlook isn’t all gloomy. The university recently completed two new dorms on 4th Street just north of the neighborhood and is nearing completion of its top-notch Interdisciplinary Research Building at Georgia Avenue and W Street.
What is “Red Coats”?
I believe it is an office cleaning company.