The snapshot illustrates the complex web of challenges “eroding” the commonwealth’s vaunted healthcare system for hospitals, caregivers, and patient

The interactive document illustrates how, one by one, dozens of growing demands are eroding hospitals’ stability, driving caregiver burnout, and increasing costs for all.

Many of these factors fly below the radar of the public eye. But they are now contributing to “financial peril” for the healthcare sector. This includes a historic $200 million shortfall for the Health Safety Net (HSN), the fund pays for care delivered to low-income, uninsured individuals. When the cost of care for these patients exceeds the amount of money in the fund, hospitals are solely responsible for covering the shortfall – without support from insurers or other parts of the healthcare ecosystem. With hospitals’ operating margins already at negative -0.9%, this is just one of the fractures weakening care delivery in Massachusetts.

The snapshot also shows the changing needs of patients, who are now spending 10% longer in the hospital compared to 2018. It also covers the 1,000-plus patients who are stuck in hospitals awaiting a post-acute care placement, the estimated $1.75 billion being wasted on excessive administrative burdens, and the unacceptable rise in workplace violence in recent years.

“Solutions start with acceptance,” said MHA president and CEO Steve Walsh in a piece published by Commonwealth Beacon last week. “Given the stakes, it is imperative that everyone involved in healthcare – from insurers to business partners to policymakers – recognize the new reality of hospital finances, move past out-of-touch arguments that thrive off blame, and help us restore a basic sense of stability to the Commonwealth’s most essential sector. There is simply no other option but for all of us to be working from the same set of facts if we want to control costs and keep patient services off the chopping block.”

The snapshot also illustrates what is at stake if the commonwealth can’t stabilize the sector: a national leader for access and affordability, a top economic driver for local communities, and an essential 24/7 resource for everyone in need.

“Putting the stability of patients and communities ahead of their own is why Massachusetts ranked first in the country for preventable loss of life throughout the pandemic, but the bill for that effort has come due”, continued Walsh. Walsh is among the sector leaders testifying at this Thursday’s Cost Trends hearing. To learn more about the state of Massachusetts’ healthcare sector, Life After Steward is now available at this link. You can view this static version if your browser does not support the interactive features.