Following a brief rebound in March, hospitals and health systems saw significant decreases in revenue in April, according to a May 31 Kaufman Hall report.
Gross operating, inpatient and outpatient revenues all dropped by about 7 percent in April compared to March. The decline in revenue was tied to lower patient volume. Patient days were down 5.7 percent in April compared to March. Patient days were down 1.8 percent compared to April 2021, according to the report.
"Hospital patients in 2022 are likely sicker, harder to discharge, and more expensive to treat than hospital patients in 2021," Erik Swanson, senior vice president of data and analytics at Kaufman Hall said. "Fewer patients who are sicker and more expensive weigh heavily on hospitals' operating margins, putting a strain on both expenses and revenue."
The report noted that expenses were down from March but remained high in April and well above pre-pandemic levels. Expenses were up 8.3 percent year over year.
"Labor shortages, high prices for supplies, and cost increases to treat sicker patients over longer stays are ballooning hospital expenses," Mr. Swanson said. "With a bleak consensus outlook for the U.S. economy, those factors and their effects could be here for a while."