New Orleans-area hospitals bleeding red ink, federal report says

The five major New Orleans-area hospitals lost a combined $386.8 million between 2005 and 2007, and still face major financial hurdles despite lower losses projected in 2008, according to a congressional report released by the Government Accountability Office. Some hospital executives said they hope the report will persuade Congress to approve a stalled $350 million package intended to help hospitals in Louisiana and Mississippi deal with post-Katrina cash-flow problems. The five New Orleans hospitals would combine to receive $135 million under the package.