Nearly one out of every 10 Texas hospitals is at serious risk of closure, and nearly half of all Texas hospitals are facing negative operating margins this year, according to a new report released this week from Kaufman Hall.
The culprit: COVID-19.
Due principally to the profound impact of the pandemic, the percentage of Texas hospitals at serious risk of closure has nearly doubled since 2020, to 9.2% in 2022, Healthcare Finance reports. While support from the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act helped lessen the closure risk for Texas hospitals in 2020 and 2021, the risk has steadily grown over time.
Margins, meanwhile, are still down compared to before the pandemic. Even with stimulus support, operating margins were below pre-pandemic levels in 2020. But there is no further federal support on the horizon. Read more.
