HealthExec August 6, 2024
The American healthcare system is facing increasing financial instability according to the American Hospital Association (AHA). The organization said the situation that has been worsening over the years due to multiple factors, but the biggest contributors are the unsustainable, decreasing Medicare reimbursements combined with high inflation, rising drug and supply prices, staffing shortages and the resulting rise in staffing costs.
Health Exec spoke with Bharath Krishnamurthy, AHA director of health policy and analytics, who provided a comprehensive overview of the challenges and the steps needed to address them. He said the Medicare pays about 82 cents per dollar of actual cost to deliver care to patients.
“There’s no other sector where you’re expected to operate on 82 cents for...
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