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AHA survey: 52% of hospitals that responded are operating at a loss

Little, Arkansas – As the economy has been struggling, our hospitals, and the Arkansas Hospital Association said that some hospitals could face closure if something doesn’t change.
It’s mostly the smaller hospitals that don’t have the same resources as our major healthcare systems that could be in danger. “Mostly they are independent. They don’t have reserves that they’ve built up over the years,” said Bo Ryall, President, and CDO of Arkansas Hospital Association.
According to AHA, revenue can’t keep up with the high costs. Ryall added that labor, supplies, and pharmaceuticals have all increased by over 20%.
According to Arkansas Hospital Association survey done this summer, 52% of hospitals that responded are operating at a loss.
The Department of Human Services has now stepped in. They are asking the American Rescue Plan Act steering committee to dole out $60 million in federal funding to the hospitals in “immediate jeopardy.”
That refers to those in danger of running out of cash within the next three months and without the money to cover liabilities.
Hospitals could use the funding for retaining and recruiting healthcare staff. Hospitals are still having to recruit very heavily for nurses and other healthcare workers. There is an extreme shortage out there, which makes labor costs go up a lot,” explained Ryall.
The steering committee has advanced this proposal, and the Arkansas Legislative Council will review it on Friday, September 16.
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