WASHINGTON, June 21 (UPI) -- A predicted crisis in California hospitals has not materialized, but the overall picture is still not rosy, a U.S. report says.

Previous studies had predicted that a growing gap between wealthy and struggling hospitals in the state would lead to widespread closures of under-performing hospitals.

But the general financial health of California hospitals has actually improved over the last five years, according to a new analysis by consulting firm PriceWaterhouseCoopers.

Although one-third of the state's hospitals continue to lose money, only 28 hospitals actually closed over the period, according to the report. That rate was on pace with the five years before the study.

United Press International - Health Business - Briefing

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