Article: Hospitals being accused of `wasteful' spending

WASHINGTON In recent years, 600,000 of the nation's 900,000-plus hospital beds have been filled each day, an occupancy rate so low that the average hospital has made no money on the care of patients since 1986.

At the same time, the industry has been laying out $16.5 billion a year in capital and interest for buildings and major equipment such as magnetic resonance imaging machines.

The capital expenditures are a major reason why health care costs are rising faster than virtually any other item in the economy, many critics contend.

That conviction has spurred proposals to change laws that encourage hospital capital investments.

The administrator of Medicare, Gail Wilensky, said new ...

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