After three years of unprecedented challenges caring for COVID-19 patients and others, America’s hospitals and health systems face a new existential challenge from the rising costs of care, according to a report released April 20 by the AHA.
Between 2019 and 2022, overall hospital expenses increased by 17.5% while Medicare reimbursement rose just 7.5%; contract labor expenses rose 258% as hospitals relied more on contract labor to fill workforce gaps; drug expenses per patient rose 19.7% as the median price for a new drug surpassed $200,000; and hospital supply expenses per patient rose 18.5% overall, and nearly 33% for ventilators, respirators and other emergency supplies.
