Connecticut”™s hospitals have been burdened by financial instability since the start of the pandemic, according to a new report commissioned by the Connecticut Hospital Association (CHA).
The new report, “The Financial Impact of the Covid-19 Pandemic on Connecticut Hospitals,” determined the state”™s hospital expenses are $3.5 billion higher than pre-pandemic levels, which was attributed to increases in supply, drug and labor costs. Supplies and drug expenses increased the most, rising $1.1 billion, a 28% increase since 2019.
Furthermore, Connecticut hospitals incurred serious losses relative to pre-pandemic levels, including approximately $164 million in losses in fiscal year 2022. Although the federal government continues to underpay caregivers for services provided to patients on Medicare and Medicaid, hospitals are facing $1.12 billion in Medicare losses and $993 million in Medicaid losses ”“ as a result, the total hospital operating margin for Connecticut hospitals was -1% in fiscal year 2022.
While this has occurred, the health care workforce has declined ”“ Connecticut”™s hospitals are increasingly relying on expensive temporary, contract labor, with costs increasing by $519 million more compared to pre-pandemic levels, a 61% increase.
“Since the spring of 2020, Connecticut hospitals and healthcare workers have seen challenge after challenge,” said Jennifer Jackson, CEO of the CHA. “From the Covid-19 pandemic to new hurdles of treating sicker patients than before the pandemic and significant financial hardships, hospitals continue to provide high-quality care to everyone who walks through their doors, regardless of ability to pay, with a dedicated but smaller workforce who are exemplary but exhausted. This report shows that hospitals and health systems are navigating unprecedented financial challenges and the pandemic continues to have a lasting impact on healthcare across the state.”
