Connecticut hospital expenses $3.5B higher than pre-pandemic: Report

In 2022, total expenses for Connecticut hospitals were $3.5 billion higher than pre-pandemic levels, mainly due to rising costs for medical supplies, drugs and labor, according to a new report from the Connecticut Hospital Association. 

The report was published March 7 and is based on data from Kaufman Hall. It "underscores the pandemic's dramatic toll on hospitals as they face mounting strain from workforce shortages, rising costs, and Medicare and Medicaid underpayment," the state's hospital association said in a news release. 

Four key findings from the report: 

  • Expenses for supplies and drugs increased by $1.1 billion, up 28 percent from 2019. The costs for these items increased the most. 
  • Connecticut hospitals lost approximately $164 million in fiscal year 2022. The total operating margin for hospitals was negative 1 percent in fiscal 2022. 
  • Relative to pre-pandemic levels, contract labor costs increased by $519 million, or 61 percent.  
  • Hospital patients have more severe health needs than before the pandemic, leading to longer lengths of stay and higher costs, according to the report. 

The Connecticut Hospital Association is urging the state and federal governments to provide more direct funding to hospitals and health systems to support recruitment and retention. 

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