Keckley Report September 27, 2021
Last week, Kaufman, Hall and Associates released its outlook for hospital finances for the rest of 2021. Highlights of its analysis include:
Hospitals will lose about $54 billion in net income over the course of the year, even after considering federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funding from last year.
Hospital expenses compared to pre-pandemic levels have increased significantly in 2021: Drug Expenses per Adjusted Discharge +24%, Total Expenses per Adjusted Discharge +15%, Non-labor Expenses per Adjusted Discharge + 17% and Labor Expenses per Adjusted Discharge +14%. FTEs per Adjusted Occupied Bed (AOB) decreased 4% year to date—the only decline.
“Higher costs of caring for sicker patients and fewer outpatient visits...