Community Hospital Corporation announced its inaugural survey of community and rural hospital executives on financial resiliency issues impacting their institutions.
CHC’s comprehensive survey, completed in Q1 2024, found that most of the executives surveyed indicated their hospitals showed a less-than-stellar financial performance, impacted by economic and regulatory forces. Two-thirds of the respondents (69%) rated the financial health of their hospitals as poor or average. In comparison, 31% responded that their hospitals were in good or excellent financial condition.
In response to health industry challenges, respondents said a mix of expense-reduction and revenue-generating strategies were needed to bolster their hospitals’ resiliency. Adding services (70%) and reducing contract staff (69%) were the most popular choices for improvement, followed by physician recruitment (63%) and reducing supply costs (58%).
Jim Kendrick, CHC’s President and CEO, commented: “The survey findings underscore the pressing need to fortify the financial resilience of community hospitals. As healthcare landscapes continue to evolve and economic pressures persist, these institutions remain steadfast in their commitment to serving local communities.”
Kendrick added: “It’s important for these facilities to leverage partnerships, embrace innovation, and proactively address challenges to navigate the complexities ahead. It will take the collective efforts of healthcare leaders, policymakers and public support to ensure the financial resilience of community hospitals and safeguard access to essential healthcare services.”
The survey covered a broad cross-section of hospital executives — with 64% in CEO and CFO positions — located in half of U.S. states. Eighty-six percent of the total 99 respondents were affiliated with not-for-profit hospitals of which 81% were community hospitals, including critical access facilities. Other respondents represented Long-Term Acute Care hospitals and rural emergency hospitals, among other hospital types. The survey focused on hospitals with up to 250 beds, and the net patient revenue for two-thirds of the respondents’ hospitals was $75 million or less.
