Hospitals are facing a profound financial toll
2022 was the worst year financially for Connecticut hospitals since the pandemic began,
incurring over $164 million in losses
Connecticut hospital expenses are $3.5 billion higher than pre-pandemic levels.
Inflationary pressures and rising expenses for labor, drugs, and medical supplies are major drivers of this increase—and total expenses are cumulatively well above pre-pandemic levels.
Hospitals are treating sicker patients.
Hospitals are caring for patients with more severe health needs, resulting in longer lengths of stays, increased expenses, and a reduction in revenue. At the same time labor shortages in post-acute settings are preventing timely discharge of patients from hospitals, adding to expenses.
The math doesn’t work. Hospitals cannot sustain a robust healthcare delivery system for patients across the state if hospitals cannot cover their costs.
Unproven proposals that will result in billions of dollars in losses to hospitals are not in the best interest of Connecticut residents or their healthcare.
Facility fee restrictions (HB 6669) would restrict access to healthcare services in the community and reduce hospital funding by more than $420 million
Capping out-of-network rates for inpatient and outpatient services at a percentage of Medicare (SB 983) will lead to billions of dollars in reductions to hospitals, resulting in double digit negative hospital operating margins. This bill is not about reducing out-of-network rates, which are already limited by state and federal law. It’s about drastically shifting power to insurance companies. Were such a cap in place, in-network commercial rates would be pushed closer to Medicare payment rates, Connecticut hospitals would potentially lose billions in reimbursement, on top of the millions in unreimbursed Medicare and Medicaid costs Connecticut hospitals absorb each year
Policies that negatively impact access (SB 983 and HB 6620) would limit hospitals’ ability to ensure patients can choose who their doctors are and where they can go for care
Rigid government mandated staffing ratios (SB 1067) would make it harder for nurses to do their jobs and result in delayed patient care by imposing government mandated staffing ratios during a healthcare worker shortage
Tell Your Lawmakers, DON’T Devastate Connecticut Hospitals
As local Connecticut hospitals face significant financial pressures, national health insurance companies are making billions in profits. Yet some proposals being debated in Hartford would shift more negotiating power to those high profit corporations.
National health insurance companies do not need the assistance of the Connecticut state government in contract negotiations with hospitals. In 2022, the four national health insurance companies operating in Connecticut collectively made nearly $37 billion in profit, while Connecticut hospitals lost $164 million.
Questions? Contact CHA Government Relations at 203.294.7310