U.S. Hospitals Struggle Financially Despite Recovery Efforts and Tech Investments
Becker's Hospital Review
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Contributed by: Kate Gamble
Summary
According to a Kaufman Hall report, 37% of U.S. hospitals continue to operate at a loss, despite recovery efforts from the COVID-19 pandemic. Hospital executives are focusing on cost reduction and productivity improvements by developing internal talent rather than depending on costly contract labor. The integration of digital technologies and AI has been crucial for enhancing efficiency; however, high operational expenses driven by inflation and rising salaries persist. While the average hospital margin improved to 4.9% by year-end, the disparity between high and low-performing hospitals remains pronounced, with some able to offer raises and bonuses while others face significant financial challenges.
