Q&A
Pandemic impact on hospital finances
2:28:04
·
64 sec
Council Member Narcisse inquires about the pandemic's impact on hospital financial performance. Chatodd Floyd explains the financial challenges hospitals have faced over the past 15 years and how they've worsened since 2019.
- Medicaid rates have been stagnant for about 15 years, causing hospitals to lose money since 2008
- Since 2019, hospitals have experienced a 19% increase in inflation
- Hospitals face increased costs due to workforce shortages, rising pharmaceutical costs, and insurance payment delays
Mercedes Narcisse
2:28:04
Can you just you can jump in if you wanna jump in when I ask a question.
2:28:08
Can you describe how the pandemic impacted hospital's financial performance prior to 2020?
2:28:15
What was the fiscal length landscape and how has it changed now?
Chatodd Floyd
2:28:22
Yeah.
2:28:22
So for the the better part of the last 15 years, Medicaid rates have been actually pretty stagnant.
2:28:27
So a lot of our member institutions have been losing money over since about 2008.
2:28:33
However, post right prior to the pandemic, Our members have started to experience even higher rates of inflation.
2:28:41
Since 2019, it's already been 19% increase alone.
2:28:47
Medical rates from over the past 15 years collectively have been around over about 50% compared to the CPI.
2:28:57
This is unsustainable.
2:28:58
We're spending far more on short term staffing.
2:29:01
Just due to sort of the workforce shortages, as well as rising pharmaceutical cost and delays in insurance payments.
