While the recent agreement on the debt ceiling offered temporary relief, the increasing amount of debt in congressional budgets is not sustainable, he argued.
The numbers are stark as, given current funding patterns, federal spending is on pace to reach $9.8 trillion (25 percent of forecasted GDP) by 2033 and debt held by the public is on pace to exceed $45 billion (118 percent of forecasted GDP) over the same period, according to the commentary. In the shorter-term, the fiscal year 2022 budget generated a $1.4 trillion deficit.
“All this confirms that the greatest threat to healthcare’s financial and credit foundation remains the federal government’s role as lead payer,” Mr. Jordahl wrote.
The reality of the federal budget is likely to define healthcare’s experience for the “foreseeable future,” he adds.
Constrained resources will therefore be the norm for health systems, which must get their operational house in order to both generate sufficient cash flow and gain access to external capital, Mr. Jordahl concluded.
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.
