Total hospital expenses rose 4.7 percent year over year in March, while total non-labor expenses rose 5.5 percent in the same time period. The increases are linked to escalating costs of supplies, drugs and purchased services.
More specifically, operating room medical supply costs increased “significantly,” the report said, up 8.5 percent year over year in March. Looking back two years, surgical supply costs are up 13.5 percent from March 2021 to now.
“Labor expenses remain high, but growth in labor expenses slowed the first three months of 2023,” the report said, noting total labor expenses were up in March by 1.8 percent. This represents a slight increase after the market saw labor expenses ease to less than 1 percent in the first two months of the year.
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.