Nebraska hospitals are in the midst of a financial crisis on the heels of 2022, and the bad news is, Nebraska healthcare officials official are not projecting a recovery in 2023.
This financial outlook is causing hospitals to reevaluate the services they are able to provide in Nebraska communities.
The overall costs to provide patient care in Nebraska has risen 21.3% in the three years from 2020 through 2022. Hospital workforce costs are up 26.8% during this period, medical supply costs are up 25.4%, and drugs are up 42.5%.
The average net profit margin for Nebraska hospitals plummeted 72% from 2021 to 2022, dropping from 6.6% percent in 2021 to 1.8% last year. Nebraska hospitals project these unsustainable margins will continue in 2023, putting health care services at risk.
Nebraska Hospital Association President, Jeremy Nordquist, “Nebraska Hospital finance’s deteriorated significantly in 2022. The cost to provide care continues to grow faster than the reimbursements for those services. Hospitals were forced to tighten their belts.” he continued more bleakly “Over 55% of our hospitals were operating in the red…running negative margins. 93% of our hospitals time looking forward to 2023, said it’s going to be a very challenging financial year.
The Nebraska Hospital Association recently surveyed its members, about which services hospitals reduced or eliminated in 2022. Here’s what was identified:
- Reduced inpatient capacity
- Reduced inpatient behavioral health capacity
- Reduced hours for outpatient services
- Reduced orthopedic care
- Reduced rehabilitation services
- Reduced home health services
- Reduced hospice services
- Reduced admission to skilled-nursing care
- Reduced nursing home census
- Closed inpatient geriatric behavioral health unit
- Closed nursing home
- Closed free standing imaging sites in community
- Eliminated nephrology services
- Eliminated obstetric services
- Eliminated hospice services
- Eliminated home health services
Nebraska hospital leaders expect service like these to continue to be impacted without significant increases in reimbursement rates from Medicaid, Medicare, and commercial insurance.