Hospitals and health systems continued to struggle with skyrocketing expenses and depressed margins in May, even as revenues and patient volumes showed some signs of improvement from April, according to the latest National Hospital Flash Report from Kaufman Hall.
Kaufman Hall experts note that the economic outlook for hospitals and health systems in 2022 remains murky and margins are likely to remain below pre-pandemic levels throughout the year.
“While we are seeing hospitals revenues inch up, it simply is not enough to mitigate the skyrocketing costs of material and labor expenses, resulting in negative operating margins for the nation’s hospitals and health systems,” said Erik Swanson, a senior vice president of Data and Analytics with Kaufman Hall. “Hospitals are seeing labor costs increase at every level as they compete with other hospitals and local employers to retain and attract non-clinical staff with higher wages and better benefits.” Read more.
