Nebraska hospitals losing money

Prices are always changing and never stagnant. Things such as food products, clothing, oil for motor vehicles and equipment have experienced an increase in costs. However, something very important that has also risen in costs is vital medical supplies and pharmaceuticals that every hospital utilizes, as well as the cost of care.

According to a recent survey done by the Nebraska Hospital Association (NHA) on rural Nebraska hospitals, more than half are operating in the red (having more debt and bills than revenue). About 60% were losing money on their operating expenses. According to the president of NHA Jeremy Nordquist, “The state’s hospitals collectively now are reimbursed nearly $1 billion less per year than it costs to provide care to patients in the Medicaid and Medicare programs. Medicaid in particular falls short, with between 40% and 60% of costs being reimbursed.” Nordquist also added, “These are significant challenges, and our hospital leaders are doing absolutely the best they can to manage through the financial challenges they’re in right now.”

The reasoning behind hospitals being in the red is the ever increasing pharmaceutical cost supplies, as well as the increasing salaries for healthcare professionals such as physicians, nurses and other healthcare workers. As costs for goods and services increase, so does the demand for higher wages. The Nebraska Legislature of Health and Human Services Committee held a hearing on Friday in order to look into a measure that will provide funds of more than $500 million to help struggling hospitals within the state. This will significantly help medical facilities in order to operate outside of the red.

Legislative Bill 1087 of the Hospital Quality Assurance and Access Assessment Act, introduced by State Senator Mike Jacobson, would provide additional Medicaid funds for many hospitals in Nebraska. As of now, 44 other states are participating in the program. This would help in providing additional support to struggling medical facilities and ensuring that they are able to keep on serving their respective communities. Different hospital representatives say that LB 1087 could help solve the loss problems and bring about improvements.

By Robert Tengker