Keckley Report February 15, 2021
The pandemic has compromised the long-term sustainability of hospitals. Insurers are coming through stronger. Ditto for drug manufacturers and their distributors and retailers. But hospitals have lost ground: the old playbook used by most hospitals simply isn’t working anymore.
Per Kaufman Hall, median hospital operating margins closed 2020 at 0.3%, not including federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funding and 2.7% if included. That’s down 56% vs.2019. At the same time, total expense per adjusted discharge and labor expense per adjusted discharge both increased 14.4% and non-labor expense per adjusted discharge increased 14.2%. Per Chartis, 453 rural hospitals are in danger of closing and most (77%) have 33 days or less of cash on hand. Per Deloitte,...
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