Nearly 10% of Texas hospitals are at risk of closing: 7 things to know

The number of Texas hospitals at risk of closing has nearly doubled in the past two years, rising from 4.7 percent in 2020 to 9.2 percent this year, according to a November report from Kaufman Hall. 

Kaufman Hall's report includes data from more than 60 Texas hospitals sampled from data from Syntellis Performance Solutions, which are extrapolated to a statewide view controlling for hospital type, location, and size.

Seven things to know: 

1. This year, 47.4 percent of Texas hospitals have negative margins, compared to 33.9 percent in 2019. 

2. Rural hospitals face a higher risk of closure than their urban counterparts do. Twenty-six percent of rural hospitals are at risk, compared to 5 percent of urban hospitals. In 2020, those figures were 16 percent and 3 percent, respectively. 

3. Texas hospital operating margins are 24.1 percent lower in 2022 than in 2019. 

4. Median revenues are up 11 percent this year over 2019, but median expenses are also 20 percent higher. 

5. Contract labor costs at Texas hospitals are $4.9 billion higher in 2022 than 2019. 

6. Medical supply expenses are $1.3 billion higher in 2022 than in 2019. 2021 expenses were $2.7 billion higher than in 2019. 

7. Drug expenses are $2.8 billion higher in 2022 than in 2019. 

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