Hospitals’ finances have remained stable, but high labor costs are still a major threat to their bottom lines. Data from Kaufman Hall shows a slight decrease in operating margins, with inpatient revenue increasing. Hospitals are treating more high-acuity patients, resulting in higher expenses for drugs and supplies. Physicians are facing financial instability due to low reimbursement rates, leading to unsustainable physician employment models. The American Medical Association is advocating for increased payment rates for physicians. To address these issues, there is a need for higher payment rates for physicians and new collaborative models between doctors and administrators to reduce costs and improve patient care.
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High Labor Costs Continue to Plague Providers, Data Shows
