Inflation rattles hospital supply chain and labor pool with no end in sight

Strategies for combating healthcare’s inflation challenges include partnering with other organizations to obtain supply discounts and boosting worker mental health.

With price inflation driving up healthcare supply and wage costs faster than revenue is growing, hospitals and health systems are feeling a squeeze to become more efficient.

The mismatch between revenue and cost inflation has been dramatic. In the first seven months of this year, hospital revenue climbed 5.5%, while supply and wage costs helped drive hospital total costs 9.6% higher, according to Kaufman Hall’s August 2022 National Hospital Flash Report.

Revenue-expense mismatch