Inflation has hit us all, and healthcare facilities are no different.
Where are they feeling it most? “A new AHA report highlights the
significant growth in expenses across labor, drugs, and supplies… as
well as the impact that rising inflation is having on hospital prices”
(AHA, 2022). Labor has been affected with shortages of more than
100,000 open positions since pre-pandemic, higher wage demands
follow this demand, and the necessity to hire contract staff at higher
rates, in fact, reliance on contract staff has risen 213% since 2019.
Drug costs are up 36.1% per patient adding to the bottom line at
alarming rates, not to mention to struggle to keep them in stock at
that higher cost, which then reflects on having a staff member to
deliver the drugs to the patients. Supply costs have also risen 20.6%
since 2021 mid-pandemic, to now, when even attaining those
supplies has become a challenge along with paying for them.
“According to BLS data, hospital prices have grown an average 2.1%
per year over the last decade, about half the average annual increase
in health insurance premiums” (AHA, 2022). All of this raises the
expenses for facilities, insurance companies, and worst of all, the
patient.
Massive Growth in Expenses & Rising Inflation Fuel Financial Challenges
for America’s Hospitals & Health Systems | AHA. (n.d.). Www.aha.org.
Retrieved May 5, 2022,
from https://www.aha.org/guidesreports/2022-04-22-massive-
growth-expenses-and-rising-inflation-fuel-continued-financial
Michael Nowicki. (2022). Introduction to the Financial Management of
Healthcare Organizations, Eighth Edition: Vol. Eighth edition. Gateway
to Healthcare Management.
