A new report released by the Connecticut Hospital Association (CHA) shows that hospitals are in worse financial shape now than at the height of the pandemic, with 2022 being the worst year thus far.
“Hospitals are facing significant financial pressure and they need support,” said Jennifer Jackson, the association's CEO. “We need support for our workforce, we need Medicaid underpayment addressed and we need to avoid policies or legislation that will make it worse.” Jackson said that hospitals in Connecticut are facing a $1.1 billion Medicare loss and a $993 million Medicaid loss.
The report analyzed 27 state hospitals and highlighted a total $164 million in losses for the 2022 fiscal year as well as an increase to $3.5 billion for operating expenses from 2019. Inflation and labor costs also account for the lowered revenue and higher financial burden for hospitals.
“We’re seeing patients that are sicker than pre-pandemic levels and those that stay longer in our facilities,” said Syed Hussain, chief clinical officer of Trinity Health. “It’s a multifactorial issue.”
Hospital leaders outlined their concerns in an online conference Tuesday, with the report indicating several reasons for these cost increases, including delayed care for patients who avoided going to the doctor during the pandemic, aging patients with higher rates of chronic illnesses and a gap in care for minority communities in the state.
“There is no mission without a margin,” Hussain said. “It’s really important that financially we are all stable to be able to keep our doors open, keep those innovative programs in place and build upon them to ultimately serve our communities.”
