U.S. healthcare, as of 2019, has reached an incredible high of $3.8 trillion. This number is still rising - it is projected that from 2020 to 2027 hospital spending will increase by 5.7% each year. Even with all this, however, most hospitals only see minimal profit margins from patient care. In 2019, revenues for nonprofit hospitals grew more slowly than expenses.
Hospitals are struggling for a number of reasons. In 2019, hospitals saw higher use due to Medicaid expansion - by 2027, as Baby Boomers age into Medicare coverage, government programs will pay 47% of nationwide healthcare costs. But, Medicare reimbursement rates are jut 41% of private insurance rates - that’s often less than the cost of the care itself. Another reason many hospitals are struggling is the tight job market. By 2025, it is expected that 2.3 million new healthcare workers, including nurses, lab techs, physicians, and surgeons will be added to the already nearly saturated job market. Lack of efficiency in hospital care is another contributing factor in struggling hospitals; waste can amount up to 20% of total healthcare spending. Most of these causes, however, can be solved with the implementation of supply chain management.
Find out a new and improved way of handling the hassles of modern day hospitals that is more efficient than ever here.
Infographic source: https://viehealthcare.com/hospital-supply-chain/
