June 14, 2023 – From masks and social distancing to Zoom work and school, the pandemic undeniably shifted the way society functions. While the world strives to return to pre-pandemic normalcy, COVID-19 has resulted in lasting impacts for American hospitals and health systems.
Health systems continue to face significant challenges post-pandemic such as rising costs for labor, supplies, and drugs, workplace shortages, sicker patients, and longer hospital stays. These factors have all increased pressure on the national healthcare system. Overall hospital expenses have increased by 17.5% between 2019 and 2022, according to a 2023 report from the American Hospital Association (AHA).
“This is not just a financial problem; it is an access problem. When healthcare providers cannot afford the tools and teams they need to care for patients, they will be forced to make hard choices and the people who will be impacted the most are patients,” said AHA President and CEO Rick Pollack.
In 2022, over half of hospitals ended the year operating at a financial loss, according to the AHA report. So, what are the causes of national financial challenges in healthcare?
Read more in the latest issue of The Journal of Healthcare Contracting.