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Texas hospitals still weathering pandemic’s financial and operational impact

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Texas hospitals still weathering pandemic’s financial and operational impact

Texas hospitals still weathering pandemic’s financial and operational impact

Like hospitals across the state, Hendrick Health has experienced the pandemic’s financial and operational impact. According to recently published reports by Texas Hospital Association, hospitals continue to face existential challenges two and a half years after the beginning of the COVID-19 pandemic.

“Hendrick Health is not immune to the industry headwinds outlined in these reports,” said Brad Holland, president and CEO of Hendrick Health. “However, I am proud to report Hendrick Health is holding its own during this challenging economic environment, definitely compared to others in our region.”

Holland credits the employees for a culture of continued focus on operational efficiency, giving Hendrick a record of being good stewards of its limited resources.

Yet, Hendrick is still dealing day-to-day with an array of factors out of its direct control, including:

  • Inflationary costs
  • Government and commercial insurance reimbursements not keeping pace with the increasing cost of care
  • Supply chain disruptions and escalating prices
  • Staffing challenges and the impact on our ability to perform efficiently

Key takeaways in the Texas Hospital Association reports illuminate several significant financial pressures Texas hospitals, including Hendrick, are facing. Following are some of note:

  • Hospitals have experienced lost income relative to 2019: Texas hospitals to date in 2022 have experienced lost income of $3.2 billion, which is a 30% reduction in total income across the state of Texas compared to before the pandemic in 2019.
  • Total expenses are dramatically higher than pre-pandemic levels: Through 2022 to date, labor expenses are 20.9% higher than pre-pandemic levels, while medical supplies are 8.5% above pre-pandemic levels.
  • Revenue growth has lagged the growth in expenses: In 2021, Texas hospitals’ total expenses grew 9%, but revenue increased only 2%. The trend worsened in 2022. To date this year, expenses have grown 20%, but revenue has increased only 11%.

New Report Outlines Pandemic’s Staggering Impact on Texas Hospitals is available at