Financial Health of U.S. Hospitals Deteriorates
HFMA Survey Finds ‘Have’ Hospitals Also Affected
Westchester, IL – A survey of more than 300 hospitals and health systems across the country finds that turmoil in the financial markets and a deepening recession are affecting “have” and “have not” hospitals alike. Almost 30 percent of financially strong hospitals are witnessing substantial increases in the cost of capital, while more than one-third of respondents from health system headquarters expect an extreme decline in total margins and days cash on hand. Those are just a few of the findings in Financial Health of U.S. Hospitals and Healthcare Systems, a new report issued by the Healthcare Financial Management Association (HFMA).
The new research data generated by the HFMA survey represents one of the most comprehensive looks to date at the effects of the economic downturn on the U.S. healthcare system. It points to declining volumes, increasing numbers of uninsured and unemployed patients, and diminishing revenue at many of the nation’s healthcare providers.
“A trend of public payment rates that pay less than the cost of care and the increasing uncompensated burden of the uninsured has caused some healthcare institutions to depend on investment portfolios for a significant portion of their margin,” says Richard L. Clarke, President and CEO of HFMA. “Those who are positioned well are increasingly challenged by investment volatility. Those who struggled financially will be even more sensitive to operational shifts and patient trends.”
Respondents are already facing difficult choices, which may jeopardize their ability to serve their communities. “A planned ER expansion will be put on hold,” reports one respondent. Another states, “We will have to materially reduce our staffing to offset the uncompensated care increases we are seeing.”
Please contact HFMA at the number provided, to request an Executive Summary and/or supporting tables and graphs of key findings.
About HFMA
The Healthcare Financial Management Association (HFMA) provides the resources healthcare organizations need to achieve sound fiscal health in order to provide excellent patient care. With over 35,000 members, HFMA is the nation’s leading membership organization of healthcare finance executives and leaders. We provide education, analysis, and guidance; we lead change and innovative thinking; and we create practical tools and solutions that help our members get results. Addressing capital access to improved patient care to technology advancement, HFMA is an indispensable resource on healthcare finance issues.
Press inquiries should be directed to:
Karen Metropulos
(800) 252-HFMA, ext. 329