Report: Hospitals could face new normal as financial challenges linger

Feb 28, 2023 - 02:27 PM
TI_1118_culture_quality_blouin_900x400.jpg

Hospitals continue to experience the same challenges that made 2022 the worst financial year since the start of the COVID-19 pandemic, including higher labor expenses and lower patient volumes, according to the latest report on hospital finances from Kaufman Hall. Hospital operating margins fell from -0.7% in December 2022 to -1% in January 2023, following persistent negative margins throughout last year. Notably, drug expenses have increased 12% compared to YTD 2020. 

“While we have seen a stabilization in operating margins over the past several months, the trendline continues to show that hospitals will be in a tough spot financially for the foreseeable future,” said Erik Swanson, senior vice president of data and analytics for Kaufman Hall. “With future COVID surges possible and challenging financial months ahead for hospitals, managing cash on hand will be critical to weathering the storm.”

Related News Articles

Headline
Research finds drug prices increased without adding new clinical benefits
The net prices of five drugs included in a new study from the Institute for Clinical and Economic Review increased without clinical justification in 2023.…
Headline
New report highlights gaps in NASHP’s Hospital Cost Tool 
The National Academy for State Health Policy’s Hospital Cost Tool “misses the mark in many ways, and its use by payers, purchasers and policymakers could have…
Perspective
Increasing Administrative Costs, Burdensome Commercial Insurer Practices Create Patient Care Challenges
There will always be administrative costs associated with operating a hospital. But the lion’s share of a hospital’s resources should be devoted to doing what…
Headline
AHA comments on CMS' proposed rule to mitigate impact of fraudulent catheter billing 
The AHA July 29 applauded a proposed rule by the Centers for Medicare & Medicaid Services to address concerns raised by the AHA and other organizations…
Headline
Senate HELP Committee holds hearing on medical debt
The Senate Committee on Health, Education, Labor and Pensions held a hearing July 11 on medical debt. The AHA submitted a statement for the hearing that…
Blog
Setting the Record Straight: Latest Arnold Ventures-funded Study Draws Many Faulty Conclusions, Including Incomprehensibly Linking Hospital Prices to Increased Suicides
Last week, several academics released a working paper saying hospital prices lead to employment losses outside the health sector, among other faulty…