December 1, 2021
  • Kaufman Hall’s latest National Hospital Flash Report shows that U.S. hospitals and health systems margins declined for the second straight month in October. According to the report, median change in operating margin was down 12.1 percent from September to October, and 31.5 percent compared to pre-pandemic levels in October 2019, excluding CARES Act funding. The report also found that total labor expenses rose 12.6 percent from October 2020 to October 2021, and 14.8 percent from October 2019 to October 2021. Full-time equivalents per adjusted bed decreased 4.5 percent year over year while labor expense per adjusted discharge increased 16.3 percent, suggesting higher salaries prompted by nationwide labor shortages are driving up labor expenses rather than increased staffing levels, the report concluded. (Report here; Article here)