By Tracey Drury – Senior Reporter, Buffalo Business First
Feb 28, 2024
While conditions are still tight, Western New York’s health care industry is starting to see improvements on the financial side, with increases in volume and payments reducing deficits.
It's not just a local phenomenon: Across the country, hospitals and health systems have seen conditions ease in the years following the pandemic, with 2023 presenting the most positive results, according to a report from Kaufman Hall based on data from more than 1,300 hospitals and 200,000 providers.
Though systems and hospitals saw significant financial improvements last year, it's uncertain whether that will continue into the new year. The report found margins improved in December, and were up by more than 15% compared to 2022. The average length of stay has declined and outpatient revenue has grown significantly, increasing by more than 40% compared to 2020.
That follows an especially rough 2022, when area hospitals expected to face their toughest year yet since the pandemic.
Locally, here’s what health systems are reporting:
Kaleida Health projected it would end 2023 with a loss of about $30 million on revenue of $2.4 billion, compared to a budgeted loss of $53 million. That follows a loss last year of $80 million.
“I would describe 2023 as a successful year, but a challenging year – but that’s health care. Both things can be true,” CEO Donald Boyd said.
Boyd pointed to a series of initiatives as part of a two-year, $300 million margin improvement plan that included improving access and the patient experience throughout the system and its partners; internal efficiencies and reductions in outside agency staffing.
For 2024, the Buffalo-based health plan hopes to sustain that progress and accelerate the pace, Boyd said.
“We don’t want to lose the traction we’ve made,” Boyd said. “We do we believe we can budget a positive margin for (2024). That’s inclusive of some of the one-time revenue opportunities that still exist relative to Covid and FEMA opportunities. … Our goal is to have a small, positive margin inclusive of those dollars.”
cont'd Business First