• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer

  • COVID-19
  • Opinion
  • Health IT
    • Behavioral Health
    • Care Coordination
    • EMR/EHR
    • Interoperability
    • Patient Engagement
    • Population Health Management
    • Revenue Cycle Management
    • Social Determinants of Health
  • Digital Health
    • Artificial Intelligence
    • Blockchain
    • Mobile Health
    • Precision Medicine
    • Telehealth
    • Wearables
  • Startups
  • M&A
  • Value-based Care
    • Accountable Care (ACOs)
    • Medicare Advantage
  • Life Sciences
  • Research

Hospitals Enter 2023 Facing ‘New Normal’ of Financial Uncertainty

by Fred Pennic 02/28/2023 Leave a Comment

Hospitals Enter 2023 Facing ‘New Normal’ of Financial Uncertainty

What You Should Know:

– Hospitals enter 2023 on more stable footing following the worst financial year since the start of the pandemic—but challenges persist, according to the newest data from Kaufman Hall.

– The latest National Hospital Flash Report finds that hospitals continue to experience the same challenges that made 2022 the worst financial year since the start of the pandemic, including higher labor expenses, lower patient volumes, and a fundamental shift in where patients are accessing care services. The National Hospital Flash Report draws on data from more than 900 hospitals from Syntellis Performance Solutions.

Early 2023 Performance Promising, but Still Lags Behind 2021 and 2020

Hospitals realized stronger financial performance in January 2023 compared to the previous year, as the start of 2022 coincided with the Omicron variant surge. The median year-to-date (YTD) operating margin index for hospitals was -1% in January 2023, compared to -3.7% in January 2022. The 2023 YTD operating margin index was still lower than that of 2021 at -0.1%, and 2020 at 3.1%.

Hospitals Face Persistent Expense Challenges

Patient volumes, emergency department visits, discharges and total revenues were down in January 2023 compared to December 2022. Meanwhile, expenses—particularly related to labor—increased over the same period. Total net operating revenue decreased by 3% month-over-month, while total expenses rose by 1%. Total labor expenses rose by 3% month-over-month. Notably, drug expenses have increased 12% compared to YTD 2020. The increase in drug expenses tied with lower patient volume and longer emergency department stay time indicates that hospitals are serving sicker patients in inpatient settings since the start of the pandemic.

Margins Decrease Slightly from End of 2022

Hospital operating margins in January 2023 were down slightly from -0.7% in December 2022 to -1% in January 2023 following the trend of persistent negative margins throughout last year.

One factor that contributed to the dip in performance, according to Kaufman Hall experts, is the normal trend of hospitals making purchases for the year in January.

Tagged With: Kaufman Hall, Revenue Cycle Management

Get in-depth healthcare technology analysis and commentary delivered straight to your email weekly

Reader Interactions

Primary Sidebar

Subscribe to HIT Consultant

Latest insightful articles delivered straight to your inbox weekly.

Submit a Tip or Pitch

Most Popular

Survey: Clinician Burnout Is A Public Health Crisis Demanding Urgent Action

17 Execs Share How Health IT Can Address Clinician Burnout, Staffing, & Capacity

Q/A: Dr. Johnson Talks Racial Disparities in Breast Cancer Care

Q/A: Dr. Johnson Talks Racial Disparities in Breast Cancer Care

Northwell Health Extends Contract with Allscripts Sunrise Platform Through 2027

Northwell to Deploy Epic Enterprise EHR Platform Across System

Sanofi Cuts Price of Lantus Insulin by 78% & Caps Out of Pocket Costs at $35 for All Patients

Sanofi Cuts Price of Lantus Insulin by 78% & Caps Out of Pocket Costs at $35 for All Patients

Pfizer Acquires Seagen for $43B to Tackle Cancer

Pfizer Acquires Seagen for $43B to Tackle Cancer

5 Key Trends Driving Purchasing Decisions in Healthcare IT

5 Key Trends Driving Purchasing Decisions in Healthcare IT

Sanofi to Acquire Diabetes Therapy Maker Provention Bio for $2.9B

Sanofi to Acquire Diabetes Therapy Maker Provention Bio for $2.9B

Dr. Arti Masturzo

Q/A: Dr. Masturzo Talks Addressing Food Insecurity with Patients

Transcarent Acquires 98point6 AI-Powered Virtual Care Platform and Care Business

Transcarent Acquires 98point6 AI-Powered Virtual Care Platform and Care Business

Eli Lilly Cuts Insulin Prices by 70%, Caps Patient Costs at $35 Per Month

Eli Lilly Cuts Insulin Prices by 70%, Caps Patient Costs at $35 Per Month

Secondary Sidebar

Footer

Company

  • About Us
  • Advertise with Us
  • Reprints and Permissions
  • 2023 Editorial Calendar
  • Submit An Op-Ed
  • Contact
  • Subscribe

Editorial Coverage

  • Opinion
  • Health IT
    • Care Coordination
    • EMR/EHR
    • Interoperability
    • Population Health Management
    • Revenue Cycle Management
  • Digital Health
    • Artificial Intelligence
    • Blockchain Tech
    • Precision Medicine
    • Telehealth
    • Wearables
  • Startups
  • Value-Based Care
    • Accountable Care
    • Medicare Advantage

Connect

Subscribe to HIT Consultant Media

Latest insightful articles delivered straight to your inbox weekly

Copyright © 2023. HIT Consultant Media. All Rights Reserved. Privacy Policy |