Research Report

National Hospital Flash Report: February 2022

5 minute
read
Blue background

The first month of 2022 was devastating for hospitals and health systems nationwide as they were hit full force by the Omicron tidal wave. COVID-19 cases and hospitalizations peaked at record levels in January due to rapid spread of the highly contagious variant. Actual hospital margins were negative for the first time in 11 months as a result. The median Kaufman Hall Operating Margin Index was -3.68% without CARES and -3.3% with CARES.

Outpatient volumes and revenues dropped abruptly as providers delayed nonurgent, outpatient care to mitigate Omicron’s spread and ease demands on hospitals that saw a stark increase in sicker patients requiring longer hospital stays. Meanwhile, hospital expenses continued to climb, spurred by widespread labor shortages and global supply chain challenges.

From December to January:

  • The median change in Operating Margin (without CARES) dropped 71.3%
  • Operating Room Minutes declined 15.7%
  • Average Length of Stay was up 8.6%
  • Labor Expense per Adjusted Discharge jumped 14.6%
  • Total Expense per Adjusted Discharge rose 11.6%

Read the February 2022 issue of Kaufman Hall’s National Hospital Flash Report for more data and insights on the impacts of Omicron.

Download
Erik Swanson headshot
Erik Swanson is a Senior Vice President leading Kaufman Hall’s Data and Analytics Group where he focuses on providing cutting-edge data science tools to our clients to provide deeper and more timely insight, drive operational improvement, develop thought leadership, and produce the most meaningful outcomes.
Submit
Read More from this Report Series