National Trends Point To Several Hospitals Operating In The Red

A national expert that studies hospital trends across the nation says that 2022 has been the worse year for health providers since the pandemic began in 2020.

Kaufman Hall is a healthcare consulting firm that collects data from over 900 clients to share the landscape of hospitals. Data and Analytics Senior Vice-President Erik Swanson said majority of hospitals are operating in the red.

‘It’s not that much different than what is happening to us individually, but they are operating in a state of highly increased expenses,” Swanson said. “Primarily, they have expenses that have outpaced any growth in revenue and are ultimately finding themselves in very precarious situations.”

Swanson said rural hospitals seem to be struggling the worse. Swanson said these hospitals entered the pandemic with a lower amount of cash on hand while also navigating rising costs. On top of that, Swanson said COVID stimulus relief has ran out.

Swanson said many organizations are considering reductions in services and positions as a last resort effort. Cookeville Regional Medical Center eliminated six upper management positions via attrition or elimination earlier this month.