Connecticut hospitals are facing financial challenges that exceed national and regional trends, according to a recent report. The report highlights the need for hospitals to be fully reimbursed from government programs like Medicare and Medicaid. In 2023, Connecticut hospitals saw a $76 million loss in operating income, with operating expenses increasing by 6.5%. High labor costs, supply chain issues, and rising drug prices are contributing factors to the financial strain on hospitals.
Hospital officials are calling on Medicare to begin paying rates that cover the cost of care, as underpayment from government programs leads to increased costs for commercial payers. The financial report will inform efforts ahead of the upcoming legislative session to address these challenges.
Connecticut Hospital Association CEO Jennifer Jackson emphasized the importance of finding solutions to support hospitals, which play a critical role in the state’s economy as the largest employer. The report sheds light on the urgent need to address the financial struggles facing Connecticut hospitals.
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