'A bunch of difficult decisions': Nebraska hospitals fear financial outlook in 2023
A grim outlook for Nebraska hospitals, which do not expect to make an economic comeback in 2023.
A grim outlook for Nebraska hospitals, which do not expect to make an economic comeback in 2023.
A grim outlook for Nebraska hospitals, which do not expect to make an economic comeback in 2023.
The Nebraska Hospital Association has been vocal about how healthcare systems in the state have had to tighten their belts. Now, the association is fairly certain it will take some time before hospitals will be able to loosen them a notch.
"Great Plains Health has experienced the worst cost inflation I've seen as a health care finance leader, up 21% since 2020," said Great Plains Health (North Platte) CFO, Summer Owen.
That number is in line with hospitals state-wide. Overall operating costs are up more than a fifth between 2020 and 2022, according to the Nebraska Hospital Association.
"2022 did not end on a high note. We had at the end of the year, over 55% of our hospitals were operating in the red," said NHA President Jeremy Nordquist.
The NHA said supply costs are up more than 25% and drug prices are up more than 42%, compared to 2020.
"All of those have dramatically outpaced the reimbursement rates that we have been seeing on an annual basis," said Bryce Brackle, VP of Finance at Nebraska Medicine, who calls the nearly 27% increase in workforce costs “most important.”
The NHA provided a sample of some of those medical services that have been cut down or eliminated entirely. They include reduced hospice care, closed nursing homes and closed behavioral health units.
"Right now, Nebraska Medicine's focused on employee retention and stabilization," Brackle said.
Change will not come quickly, according to Brackle, despite efforts to bring relief to the legislature.
"I don't think we're going to right the course this year. I think a lot of the solutions that are being evaluated are going to take months, if not a few years," Brackle said.
While hospitals foot the bill, patients may feel the pain, in both rural and urban hospitals.
"You become very hesitant to open new services because you're just kind of pulling in your limbs to find out how I can make sure that I can keep providing my core services to the community?" Owen said.