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Trump to tour California wildfire damage ahead of Pete Hegseth Senate vote; Ohio's political landscape, 15 years after Citizens United; MS gets $7M grant for supports to help crime victims heal; AL dean prioritizes bridge-building, empathy training for students.

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Wisconsin voters will determine the future of a strict voter I.D. law, a federal judge pauses Trump's order to end birthright citizenship, and Democrats warn a disputed North Carolina Supreme Court race could set a chilling precedent.

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Winter blues? Alaskans cure theirs at the Cordova Iceworm Festival, Trump's energy plans will impact rural folks, legislation in Virginia aims to ensure rural communities get adequate EV charging stations, and a retreat for BIPOC women earns rave reviews.

Report: Operating margins at NYS hospitals affect patient care

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Wednesday, December 4, 2024   

A new report found New York hospitals are in a precarious financial state.

The New York State Hospitals Fiscal Survey Report showed statewide hospitals are projecting an operating budget margin of 0.0% percent. While it is a slight improvement, hospital administrators said it is still insufficient for hospitals to handle patient care.

Bea Grause, president of the Healthcare Association of New York State, said government reimbursements do not cover the costs of administering health care.

"Those reimbursements are fixed and do not change," Grause pointed out. "They grow a little bit year over year but they're not keeping up with the expense growth that all hospitals are experiencing."

She noted hospitals cannot raise their commercial expenses with the expectation it will make up the difference, arguing the best way to help hospitals is to close the gap on Medicare and Medicaid payments so they keep up with expense growth. Prescription drugs are the largest continuously increasing expense hospitals face since such prices run 83% above the rate of inflation.

Staffing issues are being exacerbated by New York hospital's fiscal challenges. The report found labor expenses have grown more than 36% since 2019. While it is the second year of declining contract labor expenditures, they are double what they were in 2019.

Grause emphasized not having sufficient staff can affect the services hospitals offer.

"If a hospital is going to have a dialysis unit, you need a nephrologist. You'd probably need more than one nephrologist," Grause observed. "But you also need specially trained nurses, you need the right equipment, you need all the medication, you need the IV solution and the peritoneal solution."

Another factor in hospitals' declining operating margins is insurer demands. The report showed some surveyed hospitals project insurers' actions will cut their 2024 operating revenues by 5% or more. Estimates showed it would result in $1.3 billion or more in lost revenue for the hospitals.


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