Managing in a Downturn: How Do You Manage in a Global Financial Recession? (Trends) (Column‪)‬

As we write this column, global and local financial trends threaten to radically alter I the world as we know it. Across the Atlantic Ocean, European countries face a debt crisis and the collapse of the euro. Here at home, the federal government amasses unsustainable federal deficits exceeding a trillion dollars per year. State budgets are severely out of balance as tax revenues decline while committed costs, including retiree pension and health benefits, continue to rise. In Massachusetts, for example, some municipal employees who retire after age 55 with at least 10 years of service are eligible for "free" healthcare benefits for life. These trends affect your institution, and healthcare leaders must be prepared to respond. As leaders consider the right course of action, they will find it helpful to understand how the financial world reached its current state.