10 Statistics About the Economic Impact on Hospitals

Here are 10 statistics on the impact of the economy on hospitals in the United States, according to a survey by the American Hospital Association.

For the statistics below, the percentages represent the percent of hospitals reporting differences in various aspects of hospital financing during the first three months of 2009, as compared to the same period of 2008.

1. Emergency room visits by uninsured patients — 45 percent of hospitals reported a moderate increase in the number of emergency room visits by uninsured patients; 13 percent reported a significant increase.

2. Uncompensated care — 43 percent of hospitals reported a moderate increase in uncompensated care as a proportion of total gross revenue; 27 percent reported a significant increase.

3. Elective procedures
— 41 percent of hospitals reported a moderate decrease in elective procedures; 18 percent reported a significant decrease.

4. Inpatient admissions — 38 percent of hospitals reported a moderate decrease in inpatient admissions; 17 percent reported a significant decrease.

5. Community need — 42 percent of hospitals reported a moderate increase in community need for subsidized services; 11 percent reported a significant increase.

6. Charitable contributions — 31 percent of hospitals reported a moderate decrease in charitable contributions; 9 percent reported a significant decrease.

7. Total operating margin — 26 percent of hospitals reported a moderate decrease in total operating margin; 39 percent reported a significant decrease.

8. Days cash on hand — 32 percent of hospitals reported a moderate decrease in days cash on hand; 27 percent significant decrease.

9. Days accounts receivable — 29 percent of hospitals reported a moderate increase in days A/R; 7 percent reported a significant increase.

10. As a result of these economic conditions, hospitals responded in the following ways:

  • Administrative expenses — 80 percent of hospitals reported cutting administrative expenses as a result of economic concerns.
  • Staff reductions — 48 percent of hospitals reduced staff.
  • Service cuts — 22 percent of hospitals reduced services.
  • Mergers — 9 percent of hospitals reported considering a merger.

Source: AHA's The Economic Crisis: The Toll on the Patients and Communities Hospitals Serve, April 2009.

Download a copy of The Economic Crisis report.

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