Year-End 2022 Financials Show Significant Drops for Colorado Hospitals
GREENWOOD VILLAGE, COLO. – March 14, 2023 – Following its release in January that detailed the financial results of the first eight months of 2022, Colorado Hospital Association (CHA) has analyzed the year-end 2022 financials for Colorado hospitals.
The data show even more troubling trends on the financial and operational impacts for hospitals since the onset of the COVID-19 pandemic.
- Statewide operating margin drops to 4.7 percent: For perspective, the national benchmark of sustainability for a hospital is 4 percent, meaning the hospital has enough to invest in new technology, necessary facility updates, cover increased workforce and supply costs, and more.
- Statewide total margin is 1.5 percent: Operating margin reflects revenue from patient care; total margin also incorporates investment or other revenue outside of patient care. This is the first time Colorado hospital total margin has been this close to zero – a dangerous sign for the future of the state’s hospital ecosystem.
- Expenses remain up and outpacing revenue. Total expenses in 2022 for Colorado hospitals are significantly higher than pre-pandemic levels, outpacing increases in reimbursements.
“Colorado hospitals recognize that health care affordability continues to be a top concern for Coloradoans, and we are committed to making more progress,” said Jeff Tieman, CHA president and CEO. “Unfortunately, recent accounts of hospital financial performance have been misstated, and the actual 2022 data shows that Colorado hospitals face serious challenges including much higher labor and supply costs. They are taking all steps they can to weather the most difficult financial storm they’ve faced in recent years.”
About Colorado Hospital Association
Colorado Hospital Association (CHA) is the leading voice of Colorado’s hospital and health system community. Representing more than 100 member hospitals and health systems throughout the state, CHA serves as a trusted, credible and reliable resource on health issues, hospital data and trends for its members, media, policymakers and the general public. Through CHA, Colorado’s hospitals and health systems work together in their shared commitment to improve health and health care in Colorado. Learn more at www.cha.com.
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