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New AHA Report Highlights Growing Financial Challenges for Hospitals
The AHA on May 2 released a new report highlighting how hospitals and health systems continue to face significant financial pressures that challenge their ability to provide 24/7 care to patients and communities.
In 2023, data shows that hospitals and health systems face substantial challenges due to higher costs for labor, medicines and supplies. At the same time, Medicare and Medicaid reimbursements have not kept pace with these rising costs, and hospitals and health systems have increasingly encountered challenges dealing with costly practices by commercial insurers that delay and deny payment for patient care. These issues were exacerbated by the recent Change Healthcare cyberattack, forcing many hospitals and health systems to tap into dwindling cash reserves to maintain operations.
“As this report clearly highlights, rising expenses, workforce challenges, and growing administrative burdens are unsustainable and create headwinds and obstacles that threaten access to health care for millions of Americans,” he said AHA President and CEO Rick Pollack. “The AHA urges Congress and the Administration to take action to strengthen hospitals and health systems and strengthen access to care for all patients and communities.”