ARKANSAS, USA — The Arkansas Hospital Association recently conducted a financial survey that showed how the COVID-19 pandemic has had a significant financial impact on the state’s hospitals.
This sustained financial stress could result in diminished access to healthcare for Arkansans.
Hospitals that responded to the survey saw on average, a total margin decrease of 3.5 percentage points between the first quarter of 2019 and the first quarter of 2022— which left a full 52% of respondents in the red.
Bo Ryall, President & CEO of Arkansas Hospital Association., commented that the survey painted a bleak picture for Arkansas hospitals' finances.
“The fact that about half of the facilities who responded are now operating on negative margins should be a major cause for concern for all of us," said Ryall.
Without a hospital to serve the community, the city's most vulnerable residents, such as the elderly or those living in poverty, may find their access to healthcare extremely limited.
According to Ryall, hospital leaders are "motivated by their shared mission to provide care to the people of our state", but won't be able to turn their financial situation around alone.
“[It] will require all of us to recognize the crucial role they play as both the heart of the health care system and a major driver of the state’s economy," Ryall explained. "Unless hospitals receive additional assistance from state and federal government, we will see more reductions in services and possibly even closures.”
The environment of uncertainty surrounding hospitals has forced them to make difficult clinical, operational, and financial decisions over the course of the pandemic.
Prior to COVID-19, Arkansas hospitals were facing downward revenue pressure from payers, and many were operating on slim budgets— now they are seeing a rapid increase in expenses.
As demand for healthcare spiked, hospital staffing also became an issue. Despite an ebb in COVID-19 cases in spring, the survey showed that inflationary pressures continued to increase.