HFMA: Top Causes of Operational Margin Pressure Among Health Systems

  1. Higher labor costs: 96%
  2. Lower reimbursement from payers: 84%
  3. Higher supply costs: 47%
  4. Lower inpatient volumes: 25%
  5. Lower outpatient volumes: 17%
  6. Lower patient collections: 10%
  7. Other: 8%
Notes: Based on survey responses of 135 health system Chief Financial Officers and qualitative interviews with CFOs conducted in the first quarter of 2024.

Source: Health Systems near their breaking point. Labor costs continue to increase while dollars collected from payers decrease. Healthcare Financial Management Association (HFMA) press release, March 6, 2024. - https://www.hfma.org/press-releases/health-systems-near-their-breaking-point-la…