The most recent KaufmanHall National Hospital Flash Report points to persistent and ongoing financial challenges for hospitals.
The report reflects what you are seeing in your own organizations—specifically double-digit wage increases to curb reliance on contract labor, sharp upticks in supplies and drugs, and increased costs to ensure physician access.
We also saw the Maryland hospital profit margin drop again in January to -0.7%, reflecting four straight months of negative median margins.
While the current market affects many, hospitals are critical to the healthy infrastructure and growth of every community. You provide acute, lifesaving care and steady, positive margins are critical to ensure you can continue your mission.
MHA began telling the story of unexpected and uncontrollable post-pandemic financial strain earlier in the year through MHA Insight. We’ve been sharing the details in Annapolis, on Patterson Avenue, and with the new administration in advance of annual payment update conversations with the Health Services Cost Review Commission (HSCRC).
On Wednesday we pointed to these challenges and more when submitting the fieldwide Rate Year 2024 Annual Payment Update request of 4.23% to HSCRC. MHA also requested the Commission complete a comprehensive assessment of the financial health of Maryland hospitals, with independent input from rating agencies, banks, and other financial experts.
Stable hospital finances are essential to meet the mission of care to your communities and the aims of our Model. Your MHA team will continue to make this case at all levels of government.