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Hospital Challenges: Inflation and Competition

Hospital Challenges in 2023 as discussed in a Becker's Hospital Review Webinar. Challenge #1: Inflation Overall Hospital Cost rose 16% in 2022 for both supplies and labor. Labor inflation is in part driven by needing to pay traveling nurses upwards of $200 per hour. Historically, many hospitals paid their own nurses $30 per hour. Challenge #2: Margin Skimming Hospital Systems are being challenged by competing hospital systems that are opening Ambulatory Surgery Centers and Imaging Centers (i.e. outpatient facilities) in their geography and 'skimming' high-margin surgeries and imaging away from their hospital. Specifically, Hospital Corporation of America (HCA) is increasing it ratio of outpatient facilities to hospitals from 12:1 to 20:1... almost Double! In response to these challenges, some hospitals are merging with other hospital systems. For example, the SCL Hospital System in Colorado is merging with Intermountain Health Care. Challenge #3: Low Patient Volume Patient volumes at hospitals is still below Pre-COVID levels. Overall hospital admits are 83% of Pre-COVID Levels. ER visits are at 91%. Surgeries are at 89%. Outpatient visits are at 86%. Features CEOs and a CFO from 3 major hospital systems in America, along with the hospital consulting firm VMG Health. Watch Medicare IP List Video Mentioned:    • Orthopedic Surgery--Major Changes in ...   Sources: https://go.beckershospitalreview.com/... AHealthcareZ is 200+ Healthcare Finance Educational Videos. 💥 BOOK: Check out Dr. Bricker’s Book 16 Lessons in the Business of Healing here: https://www.ahealthcarez.com/healthca... AHealthcareZ Viewers Include: Employee Benefits Professionals, HR, CFOs, Insurance Brokers, Benefits Consultants, Doctors and Nurses in Leadership Roles, Hospital and Health System Administrators, Health Insurance Carrier and PBM Professionals, Pharma and Med Device Professionals, Academic Professors and Students in Healthcare Administration and Public Health. 90,000+ Views Per Month Across All Platforms. Visit AHealthcareZ.com to Subscribe to the Healthcare Finance Video Newsletter.