Washington state hospitals were found to be operating in record deficits in the second quarter following the first quarter of this year.
Kathy Sauer, CEO of the Washington State Hospital Association (WSHA), said the biggest concern is that hospital revenues are running into a large deficit that can’t be afforded, and that some residents may lose access to care.
Washington state hospitals posted a net loss of $1.8 billion in the first half of this year, including $929 million in the first quarter and $820 million in the second quarter, according to a financial survey report released by the WSHA.
Sauer said that hospitals survived 2020-2021 thanks to the federal government’s support for the coronavirus pandemic. In particular, he explained that the excessive wages of ‘travel nurses’, who were hired as ‘tinkers’, were a factor driving the deficit.
Washington state hospitals spent 11% more on drugs and labor than in the first half of 2021. Spending on staff salaries increased by 9% and travel nurses’ wages increased by a whopping 235%. Of the 85 hospitals surveyed, 75 said they spent more than they earned, and more than half said they would run out of money by the end of 2023 if the deficit continues current trends.
The situation is similar for individual hospital systems. UW Medical Center (Seattle) and Valley Medical Center (Renton) affiliated with the University of Washington have budgeted deficits for next year. Harborview Medical Center, the only first-class trauma hospital in Washington state, will avoid a deficit next year, but it will be difficult to raise a corresponding medical performance, an official said.
The Tacoma-based multi-care hospital system has recorded a deficit of $250 million so far this year ($22 million in August alone), and the Overlake Hospital in Bellevue and Cascade Medical Center in Levenworth (Germany) also recorded a monthly deficit. It is being recorded, the WSHA said. Overlake recently closed an urgent care center.