Other findings of the report include the following:

Hospital employment is down approximately 100,000 from pre-pandemic levels, according to the Bureau of Labor Statistics, while hospital labor expenses per patient through 2021 were more than 19% higher than pre-pandemic levels.
An increased reliance on contract staff (especially nurses) has driven labor expenses. According to the AHA, hospitals spent a median of 4.7% of their nurse labor expenses for contract travel nurses in 2019; that median was 38.6% as of January 2022.
At the same time, contract staff agencies have increased their rates. The ASA notes "hourly billing rates that hospitals pay staffing firms for contract employees have increased 213% compared to pre-pandemic levels and led to a 62% profit margin for contract staff agencies."
Drug expenses and medical supply expenses have increased, too, between pre-pandemic levels and now.

"With additional [COVID-19] surges potentially on the horizon, the massive growth in expenses is unsustainable," the AHA concludes, making a plea for additional federal support. "Most of the nation's hospitals were operating on razor-thin margins prior to the pandemic, and now, many of these hospitals are in an even more precarious financial situation. Regardless of potential new surges of COVID-19, hospitals and health systems continue to face workforce retention and recruitment challenges, supply chain disruptions, and exorbitant expenses."

Instant Insights /

America's hospitals facing 'massive growth in expenses'

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