The finances of Arizona hospitals are bleak, association says
On Friday, a leading hospital group released new financial details about the state of hospitals across the state.
A new report released by the Arizona Hospital and Healthcare Association, which represents several hospitals across the state, painted a “bleak picture” of hospital finances.
According to the report, operating margins significantly declined during the first half of 2022 compared to the previous year. The financial losses stem from the high inflation in the labor and supply market.
The report also goes into detail about staffing issues. Arizona hospitals had a 15% increase in wages and salaries. The organization attributes this struggle in recruiting and retaining staff.
“These losses have been driven by extraordinary inflation in the labor and supply market, with contract labor increasing by 188% in the first quarter of 2022 and by 263% during the second quarter compared to the same periods in 2021,” said Ann-Marie Alameddin, president and CEO of the association said in a press release Friday.