Cleveland Clinic chief executive officer and president Toby Cosgrove predicted the federal health care law would cost the prestigious facility $174 million in annual revenue beginning in 2015.

“The new health care reform bill means we’re going to have to do better with less,” Cosgrove was quoted as saying in local reports during his annual state of the clinic address earlier this month.

The biggest hit will come from declining reimbursement rates, Cosgrove said. Heightened reporting and quality standards will also lead to greater expenses.

The hospital’s operating revenue totaled $5.8 billion in fiscal 2010, according to reports. That marks a 5% increase from the previous year.

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