Washington hospitals suffered a collective $1.74 billion in operating losses in 2023, according to an April 23 report from the Washington State Hospital Association.
The 2023 losses were not as severe as the 2022 losses, when hospitals sustained more than $2.1 billion in operating losses, according to the report. Investments, COVID-19 relief and Federal Emergency Management Agency funds helped offset losses.
Washington hospitals saw operating margins of -1% in 2023, compared to -9% in 2022, according to the report. Wages and benefits increased almost 16% in 2023.
Washington State Hospital Association CFO Eric Lewis said that 85% of hospitals in the state are continuing to lose money, according to the report.
"Though this year wasn't as devastating as 2022, hospitals have very little left in reserve to counteract the continuing losses without cutting services," Mr. Lewis said.
The report noted that hospitals should see some relief with the enactment of the Safety Net Assessment Program, which will provide Medicaid reimbursement rate hikes retroactive to the start of 2024.