Hospital Leaders: Workforce Shortages Persist Amid Stabilization

According to Kaufman Hall's 2023 State of Healthcare Performance Improvement report, hospitals and health systems are experiencing signs of stabilization and margin improvement. However, persistent challenges include workforce shortages, rising expenses, and patient access issues. Achieving the desired 3-4% operating margins for long-term sustainability is expected to be a gradual process. Claims denials, reported by 73% of respondents, have had a substantial impact on hospital revenue. Patient access to care is a growing concern due to capacity shortages, with 32% of respondents noting increased patient complaints. While contract labor utilization is declining, recruitment and retention strategies, like salary increases, are being pursued. Patients are increasingly seeking care in outpatient settings, and despite ongoing labor challenges, automation technology optimization remains incomplete. Supply chain issues have improved but still cause distribution delays for nearly three-quarters of survey respondents.