Last year was the worst financial year for U.S. hospitals and health systems since the start of the COVID-19 pandemic, as growth in expenses outpaced growth in revenues and volumes, according to the latest report on hospital finances from Kaufman Hall. 

“The increases were driven in part by a competitive labor market, as well as hospitals needing to rely on more expensive contract labor to meet staffing demands,” the report notes. “Increased lengths of stay due to a decline in discharges also negatively affected hospital margins.” 

Hospitals experienced negative operating margins for most of the year, with approximately half of the nation’s hospitals ending the year in the red. According to the report, hospitals’ expense pressures “are unlikely to recede in 2023.”

Related News Articles

Headline
The White House and Speaker McCarthy May 27 announced the Fiscal Responsibility Act of 2023 (H.R. 3746), a deal to suspend the debt limit for nearly two…
Headline
Sens. Bob Casey, D-Pa., and Chuck Grassley, R-Iowa, have introduced the Rural Hospital Support Act (S.1110), AHA-supported legislation that would make…
Headline
In a blog published today, AHA refuted a number of suggestions that appeared in a recent Health Affairs column discussing what is behind the…
Headline
Hospital operating margins dipped again in February to -1.1% and continue to remain negative, though with less month-to-month variation, according to the…
Headline
President Biden today submitted to Congress his budget request for fiscal year 2024. The budget includes discussion of certain health care policies, such as…
Headline
U.S. hospitals and health systems continued to experience negative operating margins through November 2022, Kaufman Hall reported today. Median operating…