Raleigh, N.C.-based WakeMed Health revealed its labor expenses surged approximately 33 percentage points in the period from Sept. 30, 2020, to Sept. 30, 2022.
While such expenses rose 15.7 percent from 2020 to 2021, there was a further hike of 17.8 percent in the period ending Sept. 30, 2022, WakeMed said in a Feb. 23 filing.
In addition, supply expenses rose a combined 22.3 percentage points in the same two-year period, further pressuring margins as the system reported an operating loss of $107.5 million in 2022.
"Total operating revenue and most key volumes exceeded prior year but expense pressures yielded a decline in operating trends during 2022 related to continued reliance on contract labor resources, premium pay, and overtime due to ongoing workforce shortages in our labor market," WakeMed management said in the filing. "Supply chain disruptions have kept costs escalated since the onset of the pandemic."
WakeMed, which had two new hospitals approved, according to a Feb. 21 report, operates three hospitals in Raleigh and Cary as well as emergency services and several outpatient locations.