June 2018
Expense
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National Expense Observations
With regard to expenses, May was a good month, as national medians for expense per adjusted discharge decreased by 1.8 percent from this time last year and decreased month-over-month by nearly 5 percent. Decreased LOS largely contributed to reduced expenses. Average LOS decreased by nearly 3 percent, prompting organizations to flex where appropriate. Given this trend, hospitals need to maintain vigilance when monitoring cost on a volume-adjusted basis. Labor expense followed a similar trend: Nationally and among most bed sizes and regions, labor expense decreased compared with last year’s performance. FTEs per adjusted occupied bed (FTEs per AOB) also declined nationally by 2 percent. If wage pressures heat up, further improvements in workforce productivity will be critical.
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National Observations
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National Hospital Flash Report
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