Pandemic Had 'Tremendous Impact' on Hospitals

CONTRIBUTED BY ALABAMA HOSPITAL ASSOCIATION

ALABAMA —

Hospital margins in Alabama have dropped 79% since the start of the pandemic, despite receiving financial assistance directly from the federal government and federal funds distributed through the state.

Currently, 50% of Alabama’s hospitals are operating in the red. These jarring statistics came from a report released today by Kaufman Hall, a nationally known healthcare and higher education consulting firm, prepared at the request of the Alabama Hospital Association.

“Last year was the worst year financially for hospitals nationwide, but the situation in Alabama is much worse,” said Erik Swanson, senior vice president of data and analytics at Kaufman Hall and the lead on the national and Alabama reports. “Since the beginning of the pandemic, Alabama’s hospitals have lost $1.5 billion — money they couldn’t afford to lose. The report clearly shows that Alabama’s hospitals are in serious financial difficulty, which creates a huge threat to the ability of Alabamians to have access to health care.”

See IMPACT, page A3