Thread regarding Ascension Health layoffs

Quit giving large bonuses to upper management you should loose money!

• The group reviewed 10 large nonprofit hospital systems’ second-quarter financial statements (the most recent available at the time of article submission).

• All 10 of the hospital systems reported negative overall profit margins during the quarter, averaging a decline from 9% in 2021 to -6% in 2022, the researchers found.

• The systems saw a collective -184.6% year-over-year decline across their investment return-to-total revenue ratios, whereas patient care revenue obtained by providing hospital services rose by just under one percent, the researchers wrote.

• The organizations’ investment losses accounted for approximately 85% of their overall financial losses during the period, they wrote.

• “Investment losses are highlighted by Ascension’s $4.7 billion loss [17%] and CommonSpirit’s $3.7 billion loss [21.2%]” on a year-to-year basis during the analyzed quarter, researchers wrote in the article.

• “Other sources attribute hospital financial losses to increased labor costs, particularly for nurses and health professionals, and increased supply costs.

• "Our analysis suggests that investment losses are actually the primary driver of these nonprofit health systems’ overall losses.”

https://www.fiercehealthcare.com/providers/taxpayers-shouldnt-have-subsidize-health-systems-massive-2022-investment-losses-health

Aw, just watch.

They'll keep pulling the levers of the Wall Street investment slot machine -- much like the sad, pathetic, lonely gambling addicts one can find in any desolate, barren, windswept Nevada casino.

And... the punchline:

• Wall Street losses should not impact private payers’ and taxpayers’ payments to hospitals.

• Asking these constituents to foot the bill for hospitals’ investment losses not only lacks justification but will insulate hospitals from the consequences of their investment decisions, motivating less fiscally responsible behavior in the future.

Bingo!

https://www.healthaffairs.org/content/forefront/s-behind-losses-large-nonprofit-health-systems