Hospitals see expense relief

Laura Dyrda for Becker’s Hospital Review

Nonprofit hospital expenses dropped from November to December and had low single digit growth year over year, according to Kaufman Hall’s “National Hospital Flash Report,” released Jan. 30.

The data shows overall expenses per calendar day declined 2% month over month and grew 4% year over year in December, slower growth than in the past.

Hospital expenses broken out into core areas include:

Labor expenses per calendar day
Month over month: -1%
Year over year in 2023: 1%

Non-labor expenses per calendar day
Month over month: -3%
Year over year in 2023: 7%

Supply expenses per calendar day
Month over month: -3%
Year over year in 2023: 5%

Drugs expenses per calendar day
Month over month: -5%
Year over year in 2023: 6%

Purchased services expenses per calendar day
Month over month: -3%
Year over year in 2023: 7%

Total expenses per adjusted discharge
Month over month: 0%
Year over year in 2023: -4%

Total expenses dropped the most for nonprofit hospitals in the Midwest, at 4% month over month. In nearly every region, expenses dipped in the low single digits.

While revenue expenses dropped month over month, so did net operating revenue. Nationally, net operating revenue per calendar day was down 2% month over month and grew just 6% year over year in 2023.