Hospitals and health systems nationwide closed the second year of the pandemic caught in a vise of rising volumes and ballooning expenses, as COVID-19 cases climbed to new highs and critical labor shortages and supply chain issues continued to plague providers. Many organizations ended 2021 in a stronger position compared to lows seen in 2020, as hospital leaders have learned to better navigate the pandemic’s volatility. However, overall hospital performance remains below pre-pandemic levels on most metrics.
From December 2019 to December 2021, hospitals saw:
- Median change in Operating Margin (without CARES) drop 14.7%
- Total Expense per Adjusted Discharge rise 25.4%
- Labor Expense per Adjusted Discharge jump 26.8%
- Adjusted Discharges decline 4.7%
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A Special Workforce Edition of the National Hospital Flash Report
A nationwide shortage of healthcare workers made worse by the pandemic, and hospital and health systems’ increased reliance on contract labor, is driving expenses upward and contributing to steep declines in profit margins, according to a Special Workforce Edition of Kaufman Hall’s National Hospital Flash Report.
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National Hospital Flash Report: April 2022
U.S. hospitals and health systems fared better in March following a difficult start to the year due to January’s devastating Omicron surge. While repercussions of the surge persist, hospitals saw early signs of relief as outpatient volumes and revenues returned and expenses eased with fewer high acuity patients.
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National Hospital Flash Report: March 2022
2022 is off to a bad start for U.S. hospitals and health systems. Hospital operating margins remained in the red for a second consecutive month in February as healthcare providers...
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