Report finds Alabama hospitals lost $1.5B over last 3 years

MONTGOMERY, Ala. (WSFA) - Data released Thursday shows many of Alabama’s hospitals are facing an existential crisis. Dr. Donald Williamson, director of the Alabama Hospital Association, said hospitals are losing money at an alarming rate.

Data shows Alabama hospitals have lost $1.5 billion since 2020.

Williamson said if Alabama didn’t receive federal stimulus funds, Alabama’s net would have been negative $2.4 billion.

According to the report by Kaufman Hall and Associates, 2022 saw the biggest loss at $738 million. Labor, nonlabor, contract labor, drug expenses and medical expenses are the reasons behind the loss of revenue.

Salaries of hospital workers went up by 35%. Drug prices went up by 14%.

Patients are also sicker, leading to longer hospital stays with more use of medical supplies and medications. Plus, the number of uninsured patients is going up. Williamson said between 13-15% of Alabamians between 19 and 64 years old are uninsured.

Alabama was not the only state where hospitals lost money from 2020 to 2022, but it is the state that lost the most. Last year, Alabama lost 79% more money than the national average.

Data shows improvement won’t occur in 2023.

Hospitals may be forced to limit their services, some may even close as a result of the funding crisis.

The hospital association says it will ask the state Legislature for help. The Legislature could vote to expand Medicaid, which would bring in much-needed additional revenue.

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