Rising Labor & Supply Costs, Payer Disputes, and Delays Placing Strain on Hospitals
MedCity News
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Contributed by: Kate Gamble
Summary
Hospitals are grappling with severe financial pressures stemming from stagnant revenues and escalating labor and supply costs, compounded by reimbursement challenges such as payer denials and prior authorization delays. Keck Medicine of USC CEO Rod Hanners emphasized that these bureaucratic obstacles not only strain hospital finances but also disrupt patient care, causing delays and confusion as patients are redirected to lower-cost providers. The ongoing arbitration between hospitals and payers often results in partial reimbursements and legal fees that further erode financial returns. As cost control becomes increasingly urgent, Hanners advocates for improved collaboration between health systems and payers, highlighting a persistent disconnect that exacerbates existing issues.
