The State of American Hospitals: Looking Ahead to 2023

The State of American Hospitals: Looking Ahead to 2023

December is usually a good time to take stock of where we are and what lies ahead. There are the year-in-review shows, the pieces on famous celebrities who passed during the year; and then there are articles and programs that attempt to presage the upcoming year. What will be the top stories? Who will we be talking about over the next 12 months? This yearly ritual of evaluation and prognostication is also observed within the healthcare industry. As an example of this, the American Hospital Association (AHA) has, this month, published its 2023 “Environmental Scan” (ES)—an assessment of the current state of healthcare and a preview of what hospitals can expect in the new year. The following will provide a few highlights from the AHA’s ES.

Review of the Current State

ASA President and CEO Rick Pollack sums up the present state of the American hospital landscape as follows:

It is no secret that 2022 has been a very challenging year for hospitals and health systems. Challenging economic conditions, persistent workforce pressures and surges in COVID-19, the flu and RSV continue to place severe strain on hospital and health system finances. Many expect these challenges, which jeopardize access to care for patients and communities, to extend into next year and possibly beyond.

So, after recounting the difficulties in which many hospitals have found themselves over this past several months or so, the AHA’s leader sees more of the same for 2023. As these alerts have so often conveyed over the course of the current year, hospitals have faced several setbacks in their attempt to move past the effects of the coronavirus and the ensuing public health emergency (PHE). Here are just a few items we’ve addressed in this regard over the past few months:

  • Supply chain issues
  • Severe staffing shortages due to retirement, burnout, residency reductions or COVID vaccine mandates
  • Financial strain to attract and hire replacement staff, such as contract or travel nurses
  • Inability to run at full capacity due to a combination of the aforementioned supply chain and staffing issues
  • General inflation, i.e., costs
  • Patients’ increasing inability to pay copays and deductibles
  • Decreasing financial assistance from the federal government

All these issues have contributed to an undermining of the financial stability and even viability of many of our nation’s healthcare facilities. But what about the future?

A Preview of 2023

While acknowledging that many of the challenges of 2022 will persist into the new year, the AHA’s CEO believes that the proven resilience and dedication of many of America’s caregivers will make the difference in overcoming these hurdles, which will ultimately lead to greater stability over the long haul. Here is his take concerning the future of the nation’s hospitals:

At the same time and in the face of continuing challenges, our field continues to drive innovation that is leading to better care experiences and better outcomes for patients. Hospitals continue to demonstrate how they are redefining the “H” in providing care, whether it’s in the home; through telehealth and remote monitoring; in schools; community centers; sports arenas; or anywhere that care is needed. We are forming strategic alliances and implementing ideas to better coordinate care across the continuum, as well as focus on prevention and wellness. And we are continuing to advance education, technology and research efforts to improve health.

AHA Board Chair Wright Lassiter III adds to the above by asserting that “there are so many things to be excited about in healthcare now and for the future.”

It is certainly refreshing to hear these hospital experts and leaders provide a positive outlook for the industry. Those who work in our front-line health facilities need this kind of reassurance that everything will work out, that all will be well in just a while. To help solidify this hopeful outlook, the AHA is asking hospital executives to support the following agenda directed at legislators in Washington, DC:

  • Prevent any further damaging cuts to health programs, including stopping the forthcoming four percent Statutory Pay-As-You-Go (PAYGO) sequester
  • Establish a temporary per diem payment targeted to hospitals to address the issue of hospitals not being able to discharge patients to post-acute care or behavioral facilities because of staffing shortages
  • Increase the number of Medicare-funded graduate medical education positions to address the need for additional physicians in the U.S.
  • Extend or make permanent the Low-volume Adjustment and the Medicare- dependent Hospital programs—critical rural programs that are due to expire on Dec. 16
  • Make permanent the expansion of telehealth services and extend the hospital-at-home program
  • Finalize passage of the Improving Seniors’ Timely Access to Care Act, which streamlines prior authorization requirements under Medicare Advantage plans
  • Create a special statutory designation for certain hospitals that serve marginalized urban communities

It will be up to our readers to reach out to Congress and make their voices heard, should they feel strongly about the above AHA legislative priorities. We’re also here to assist where we can. Please contact us at info@miramedgs.com if we can help you in the way of business services. We partner with hospitals across the country and are ready to be of service to your facility.