𝗧𝗵𝗶𝗻𝗸𝙁𝘼𝙎𝙏. If you think that COVID-19’s worst impact on the finances of US healthcare are behind us, think again. As this article reports, this summer saw some of the worst hospital margins of the pandemic/endemic era. https://www.kaufmanhall.com/insights/research-report/national-hospital-flash-report-august-2022?utm_source=agcy&utm_campaign=nhfr-report&utm_medium=pr&utm_term=august-nhfr-22082
Three forces converge. First, the volume of high margin surgical procedures has yet to fully recover. Second, wages and supply costs have escalated substantially due to shortages of personnel and materials alike. Last but not least, Federal funds that were relatively plentiful during previous quarters are no longer available. The result? Many major health care systems have had to lay off professional staff just to keep the lights on.
Are the worst of pandemic economics now REALLY over?