Contract labor remained the top unforeseen cost for healthcare financial leaders for the second year in a row even after many were able to scale back in the wake of pandemic-related spikes, according to a March 13 report from Strata Decision Technology.
Strata's "2024 CFO Outlook for Healthcare" report is compiled from a survey of more than 100 U.S. financial professionals. Respondents represent hospitals, health systems, integrated delivery networks, home health agencies, skilled nursing facilities and other organizations.
Here were the largest unforeseen costs in 2023, according to the report:
1. Contract labor — 36%
2. Employed labor — 23%
3. Technology/IT expenses — 16%
4. Supply expenses — 14%
5. Pharmacy expenses — 10%
6. Maintenance expenses — 1%