The much anticipated Kaufman Hall flash report is out. The National Hospital Flash Report compiles data collected over the last years from over 900 hospitals. It includes statistics of hospitals across all bed sizes and pinpoints areas for operational and performance improvements.
According to the report 2022 was the worst year for hospitals financially. Hospitals have been posting negative margins consistently and expenses have outpaced revenue. The Great Resignation resulted in massive shortage of labor and labor expenses rose 3%. Ongoing shortages have contributed to longer patient stays as discharging patients is a major challenge for hospitals in the current climate.
Last year has been a year fraught with uncertainty and financial losses for hospitals.
Will 2023 be a year of change and financial recovery?
Modest albeit significant margin improvements point to a positive trend-line and attaining financial stability may not be as difficult as last year. Making course corrections early in the year, such as automating time-intensive processes can enable hospitals to come out at the other end stronger. Hospitals are looking at ways to improve provider productivity to meet increased demand and bend the cost curve.
Hiring and retaining professionals has become shockingly complex in the post- pandemic landscape. With labor expenses at an all-time high provider organizations are turning to revenue cycle partners to manage the current crisis. And the trend is here to stay. Experts predict that an increasingly number of hospitals will form strategic RCM partnerships to improve operational efficiency and strengthen their bottom-line.
Non-clinical staff shortage is a persistent issue and outsourcing non-clinical activities seems to be viable option in the current climate. It is time for hospitals to adopt better workforce management strategies as labor expenses are likely to recede in 2023.
Outpatient volumes have gone up and there is a small decline in ED visits. Hospitals need to leverage the technology superpowers needed to meet the recent influx of patients seeking outpatient care. Hospitals have reported an increase in outpatient volume in surgical settings as well. It is essential to utilize a patient engagement software to track outcomes and maintain healthy communication with patients beyond hospital walls.
2022 was a year of challenges and 2023 has started on the right foot. With margins finally looking up and patient volumes back to normal, it is time for hospitals to ensure they embrace change and maintain the positive momentum.
Are rising labor expenses an ongoing challenge at your hospital?
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