In 2019, just 23 percent of Tennessee’s hospitals were at risk of closure. Hospital margins in 2022 were down 68 percent from pre-COVID-19 pandemic levels, according to a Feb. 15 press release from Kaufman Hall, the consulting firm commissioned to create the report.
“This new analysis brings the negative financial impact of the pandemic on Tennessee hospitals and health systems into focus and makes clear the urgent need for action,” Tennessee Hospital Association President and CEO Wendy Long, MD, said. “Given the unique role hospitals play in the healthcare system — operating 24 hours a day, seven days a week, 365 days a year and treating all comers, regardless of their ability to pay — many traditionally operate on low margins and are vulnerable to shocks in the marketplace. The pandemic exacerbated existing workforce shortages and sent labor costs soaring, while reimbursement from government and commercial payers has not kept up with the increased cost of care.”
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.