New AHA report highlights mounting financial challenges for hospitals

The AHA May 2 released a new report highlighting how hospitals and health systems continue to experience significant financial pressures that challenge their ability to provide 24/7 care for patients and communities. 

In 2023, data show that hospitals and health systems faced substantial challenges due to higher costs for labor, drugs and supplies. At the same time, reimbursements from Medicare and Medicaid did not keep pace with these mounting costs, and hospitals and health systems increasingly encountered challenges navigating onerous commercial insurer practices that delayed and denied payment for patient care. Those issues have been exacerbated by the recent Change Healthcare cyberattack, forcing many hospitals and health systems to use diminishing cash reserves to maintain operations.

“As this report clearly highlights, increased expenses, workforce challenges, and growing administrative burden are unsustainable and creating headwinds and obstacles that threaten access to care for millions of Americans,” said AHA President and CEO Rick Pollack. “The AHA urges Congress and the Administration to take action to strengthen hospitals and health systems and bolster access to care for all patients and communities.”