Budgeting
Capacity crisis, cost inflation and workforce vacancies continue to impact financial performance.
The increase in total revenues was driven by organic Medicaid growth and a 21% membership growth in Medicare, company says.
Healthcare facilities across the state saw a 79% decline in median operating margins from 2019 to 2022.
Despite an end-of-year upswing, about half of U.S. hospitals finished 2022 with a negative margin, data shows.
While the profit decline was significant, Elevance maintains that the numbers still beat expectations from Wall Street.
Operating margins have been hit hard over the past year due to cost inflation, particularly staffing, finds Fitch.
Reining in the 20-25% of revenue that goes to nonmedical spend could save hospitals millions, says Brain White of LogicSource.
Almost 70% of those surveyed believe they can't afford health insurance, or think it's simply too expensive.
While labor expenses decreased somewhat, margins remained depressed throughout the year.
Hospital leaders can use digital transformation to cut costs, improve processes and gain efficiencies, says Tina Wheeler of Deloitte.