Most Nonprofit Hospitals and Health Systems Had “Strong” Days of Cash on Hand in 2022, Though About One-in-10 Were “Vulnerable”


Maximum nonprofit hospitals and medical institution techniques had sufficient money readily available in 2022 to hide working bills for a longer time period, although about one-in-10 had rather low ranges to hide their bills, which probably may go away them inclined in a monetary disaster, a new KFF analysis finds.

The research comes because the medical institution business pushes for will increase in Medicare and Medicaid repayment ranges and Congress considers regulation that would cut back medical institution revenues, akin to via site-neutral cost reform. It seems to be at “days money readily available” at 274 nonprofit hospitals and well being techniques rated through S&P International, that are estimated to jointly account for greater than part of all nonprofit hospitals and about two thirds of nonprofit beds. The measure is one in all a number of that S&P International makes use of to evaluate hospitals’ monetary well being and decide their credit standing. The ones with extra days of money readily available are higher ready to climate monetary demanding situations, akin to low working margins.

The research unearths:

  • Just about three-quarters (73%) of nonprofit hospitals and well being techniques analyzed had no less than “sturdy” ranges of money readily available according to the S&P’s same old definitions – sufficient to hide no less than 150 days of bills for well being techniques or 160 days of bills for stand-alone hospitals.
  • An extra one-in-six (18%) had “good enough” ranges of money readily available – sufficient to hide 100-150 days for medical institution techniques or 110-160 days for stand-alone hospitals.
  • About one-in-10 (9%) analyzed hospitals and well being techniques had fewer days of to be had money readily available, which the scores company considers “inclined” or “extremely inclined.” 
  • The full proportion of non-profit hospitals and well being techniques with “inclined” or “extremely inclined” ranges of days money readily available could also be better, because the because the S&P information analyzed underrepresents teams which might be much more likely to stand monetary demanding situations, akin to small and rural hospitals.
  • Throughout all analyzed hospitals and medical institution techniques, the typical ranges of days money readily available stood at 218 days in 2022, very similar to the degrees in 2019 however down from a up to date top throughout the early years of the COVID-19 pandemic.

TheMost Nonprofit Hospitals and Health Systems Analyzed Had “Adequate” or “Strong” Days of Cash on Hand in 2022, Though About One in Ten Did Not is to be had as a part of KFF’s increasing paintings inspecting the industry practices of hospitals and different suppliers, and their have an effect on on prices and affordability.



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