Financial woes put 45% of Tennessee hospitals at risk of closure
Approximately 45% of Tennessee’s hospitals are at the risk of closure for financial reasons, according to a report commissioned by the Tennessee Hospital Association. Labor shortages, high labor costs, and the increased cost of providing care exceeding reimbursement from Medicare, Medicaid, and commercial payers were the major contributors to financial concerns, all of which have been exacerbated by the pandemic. While the number of patients being hospitalized is below pre-pandemic numbers those who are hospitalized are on average sicker and requiring longer hospital stays. Nearly 60% of Tennessee hospitals lost money from their operations in 2022 with an average statewide profit margin of –2.9%. The national profit margin was 0.4%.