Trending
Hospitals are struggling across the country, and sadly Pennsylvania's are no exception. Penn Highlands Health here in Huntingdon County has faced especially severe financial challenges, with losses calculated at $94,169 a day and $2.9 million a month.
Penn Highlands is not alone in facing these challenges. More than 50 other Pennsylvania hospitals are operating at a loss, threatening their long-term sustainability.
While these hospitals remain open and continue to serve patients 24/7/365, many are continuing to lose money on the care they provide. Without more support, they are at risk of being forced to close their doors for good.
There are many causes behind this crisis, including years of high inflation, workforce shortages, and ever-increasing supply costs, but underpayments from Medicare and commercial insurers have played an outsized role.
By some estimates, hospitals receive just 82 cents back from Medicare on every dollar of care they provide.
This broken math creates a constant deficit that has drained hospital finances and left many without the cushioning needed to endure major disruptions like cyberattacks, natural disasters and public health emergencies.
It has also left many hospitals unable to make costly-but-necessary renovations and upgrade facilities to meet evolving community health needs, with some even turning to GoFundMe to raise needed funds.
A 2023 report from Healthcare Management Associates described the situation as a "perfect storm." These challenges together have left many hospitals in a position where they must worry about just being able to keep their doors open.
This is a reality we are witnessing play out across the country, not just in Pennsylvania. Hospitals across the country are struggling, especially in rural America.
More than half of U.S. hospitals operate at a loss. Congress must act to ensure that our hospitals have the resources they need to stay open and continue to serve every hour of every day, so we can count on them being open when we need them most.
Betty Ruhlman
Broad Top