Financial Health Still Tenuous Since the Pandemic

Twelve percent of clinicians health executives say they remain pessimistic about their organizations ever fully restoring their financial health to prepandemic levels, according to a report by NEJM Catalyst that was analyzed by Becker’s Hospital Review. The revelation has raised concerns within the healthcare industry. Despite an increase in patient volumes, 54% of respondents (health systems, clinics, physician organizations, or other facilities) reported that their organization’s financial health was somewhat or significantly worse than before COVID-19, primarily due to rising costs. More than three-quarters noted increased operating costs, while only 34% reported revenue increases. 

What’s the reason? Rising labor, drug, and supply costs are the common contributors to financial challenges. The situation is described as sobering, as healthcare financing struggles to keep up with the real-world cost of delivering care.