‘The math no longer works’: Oregon hospitals report worst financial quarter since pandemic hit – KTVZ

LAKE OSWEGO, Ore. (KTVZ) — The grim hospital monetary image from 2021 worsened within the first quarter of 2022, as a surge in COVID-19 hospitalizations from the Omicron wave and rising labor and different prices mixed to supply a dismal fiscal quarter that noticed 58 p.c of Oregon’s hospitals put up a unfavourable margin.

Hospitals misplaced a collective $103 million in Q1 2022 (hospitals posted a median achieve of $190 million per quarter in 2019), the Oregon Affiliation of Hospitals and Well being Programs reported Thursday.

This is the remainder of their information launch: 

Median Working Margin noticed a pointy decline in Q1 to -2.5 p.c, dropping under the staggering lows seen within the earliest phases of the pandemic. The complete report is hooked up. Whereas over half of Oregon hospitals posted a unfavourable margin final quarter, a number of the unfavourable margins have been within the double digits. 

“These sobering numbers come after two years of actually dangerous monetary efficiency,” mentioned Becky Hultberg, OAHHS President and CEO. “We’re involved about a few of these group organizations’ skill to supply life-saving and preventative companies of their communities if the monetary image doesn’t enhance.” 

Merely put, hospital income just isn’t protecting the price of affected person care. Internet Affected person Income (NPR) once more fell wanting Complete Working Bills (TOE) in Q1 2022, and the hole is rising wider. Over the previous 4 quarters, NPR has been flat whereas bills have risen 10.2 p.c. 

One important driver of that is larger prices for labor (up almost 20 p.c during the last 4 quarters and up 26% since 2019) as hospitals elevate wages to compete for scarce staff and have needed to rent contract labor to make sure ongoing affected person care. Labor accounts for no less than half of a hospital’s price, so even a small enhance in labor price has a huge impact. 

Different hospital prices have risen as nicely: different bills akin to provides, housekeeping, IT, utilities, and insurance coverage have risen 18 p.c since 2019. 

Together with bills, hospitals continued to take care of historic affected person care volumes. Omicron-fueled COVID-19 affected person hundreds peaked at 1,134 (simply wanting the Delta wave peak). Throughout the pandemic, hospitals have usually been unable to discharge sufferers to a extra acceptable degree of care at a long-term care or behavioral well being setting, that means on any given day, a whole lot of sufferers are both “boarding” within the emergency division or in a hospital mattress, ready for a placement in the neighborhood. 

“Let’s be clear, the present state of hospital funds can’t proceed. The maths not works,” mentioned Hultberg. 

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About OAHHS: Based in 1934, OAHHS is a statewide, nonprofit commerce affiliation that works intently with native and nationwide authorities leaders, enterprise and citizen coalitions, and different skilled well being care organizations to reinforce and promote group well being and to proceed enhancing Oregon’s modern well being care supply system.

Apprise Well being Insights is essentially the most dependable and full supply of hospital information in Oregon. As the information subsidiary of the Oregon Affiliation of Hospitals and Well being Programs (OAHHS), Apprise workers have gathered and analyzed information about Oregon hospitals and well being techniques since 1985. We try to supply information, instruments, and experience to assist hospitals perceive the healthcare panorama within the Pacific Northwest. 

Hooked up Media Information:Q1 2022 Monetary Report