March 2020
Expense
Expense by Region *
Hospitals in four of five regions—the South, Northeast/Mid-Atlantic, West, and Midwest—all saw increases year over year and compared to budget for both Total Expense per Adjusted Discharge and Labor Expense per Adjusted Discharge. The Northeast/Mid-Atlantic region saw the largest year-over-year increases for both metrics, up 6.1 percent for Total Expense per Adjusted Discharge, and 7.0 percent for Labor Expense per Adjusted Discharge.
Non-Labor Expense per Adjusted Discharge rose year over year and compared to budget in the Northeast/Mid-Atlantic, South, and Midwest, but was down year over year and to budget in the West and Great Plains. The Northeast/Mid-Atlantic again saw the biggest year-over-year increase at 4.9 percent, and was 3.0 percent above budget. The Great Plains saw the biggest year-over-year decrease in Non-Labor Expense per Adjusted Discharge at -2.1 percent, and fell -4.3 percent below budget.
Labor Expense
Non-Labor Expense
Supply Expense
Drug Expense
Purchased Service Expense
FTE per AOB
Supply Expense per Adjusted Discharge rose year over year in the Northeast/Mid-Atlantic, Midwest, and South, and was essentially flat year over year in the Great Plains. The West was the only region to see a year-over-year decrease in Supply Expense per Adjusted Discharge at -0.4 percent, falling -1.3 percent below budget expectations.
All regions were below budget for Drug Expense per Adjusted Discharge in February. The Northeast/Mid-Atlantic saw the biggest drop to budget at -8.4 percent, but rose 6.6 percent year over year. The South and West also saw year-over-year increases in Drug Expense per Adjusted Discharge, while the Great Plains was flat and the Midwest was down -0.6 percent.
Purchased Service Expense per Adjusted Discharge rose year over year and compared to budget in the Northeast/Mid-Atlantic, South, and Midwest. The Midwest saw the biggest increases, up 5.1 percent year over year and 8.1 percent to budget. The West saw the biggest year-over-year decrease in Purchased Service Expense at -4.9 percent, but still was 5.8 percent above budget. The Great Plains was down -3.0 percent year over year, and was the only region to perform below budget for this metric, at -1.1 percent.
National Expense Observations
Hospitals across the country saw expenses increase in February. Total Expense per Adjusted Discharge rose 2.2 percent year over year, 3.3 percent month over month, and was 1.5 percent above budget. Labor Expense per Adjusted Discharge saw the biggest year-over-year increase compared to other expense metrics, at 3.4 percent. This metric also rose 1.6 percent compared to January, and was up 2.9 percent to budget. Full-Time Equivalents (FTEs) per Adjusted Occupied Bed (AOB) increased 1.4 percent month over month, but was the only expense metric to see a slight year-over-year decline, at -0.4 percent. FTEs per AOB also fell below budget at -2.6 percent.
Non-Labor Expense per Adjusted Discharge rose 0.7 percent year over year, 1.4 percent to budget, and 4.3 percent month over month. Supply Expense per Adjusted Discharge rose 2.3 percent year over year and 1.0 percent to budget, and was essentially flat month over month at just -0.1 percent.
Drug Expense per Adjusted Discharge rose 2.4 percent compared to February 2019, but was down -1.1 percent compared to January 2020, and -3.0 percent to budget. Purchased Service Expense per Adjusted Discharge rose 3.1 percent year over year. However, this metric saw the biggest increases compared to other expense metrics, both month over month and to budget at 8.5 percent and 3.1 percent, respectively.
Unless noted, figures are Actuals and Medians
Budget Variance
Month Over Month
Year Over Year
Year Over Year Distributions
(Click to enlarge)
Total Expense per Adj. Discharge
1.5%
3.3%
2.2%
total_expense_per_adj_discharge.svg
Labor Expense per Adj. Discharge
2.9%
1.6%
3.4%
labor_expense_per_adj_discharge.svg
FTEs per AOB
(2.6%)
1.4%
(0.4%)
ftes_per_aob.svg
Non-Labor Exp per Adj. Discharge
1.4%
4.3%
0.7%
non_labor_expense_per_adj_discharge.svg
Supply Expense per Adj. Discharge
1.0%
(0.1%)
2.3%
supply_expense_per_adj_discharge.svg
Drug Expense per Adj. Discharge
(3.0%)
(1.1%)
2.4%
drug_expense_per_adj_discharge.svg
Purchased Service Exp per Adj. Discharge
3.1%
8.5%
3.1%
purchased_service_expense_per_adj_discharge.svg
Expense by Bed Size
Total Expense per Adjusted Discharge rose year over year and compared to budget across four of six bed-size cohorts. The smallest hospitals of 0-25 beds saw the biggest year-over-year increase at 4.4 percent, and also performed 4.4 percent above budget. Hospitals with 300-499 were up 1.7 percent year over year for Total Expense per Adjusted Discharge, but fell in line with budget, while hospitals with 26-99 beds were up 0.4 percent year over year, but were the only cohort to fall below budget at -1.8 percent.
Labor Expense per Adjusted Discharge rose year over year and to budget across all bed-size cohorts in February. The smallest hospitals with 0-25 beds saw the biggest year-over-year jump at 7.9 percent, and was 5.4 percent over budget. Hospitals with 26-99 beds saw the least increase, up just 1.2 percent year over year and close to budget at 0.1 percent.
Labor Expense
Non-Labor Expense
Supply Expense
Drug Expense
Purchased Service Expense
FTE per AOB
FTEs per AOB were below budget expectations at five of six bed-size cohorts, and only two cohorts saw year-over-year increases. Hospitals with 200-299 beds were up 3.5 percent year over year, and 0.5 percent to budget, while those with 500 beds or more increased 0.9 percent year over year, but fell -2.0 percent to budget.
Five of six bed-size cohorts saw increases in Non-Labor Expense per Adjusted Discharge, with 200-299 bed hospitals seeing the biggest jump at 4.1 percent compared to February 2019 and 5.6 percent to budget. Hospitals with 300-499 beds were the only cohort to see a year-over-year decrease for this metric at -1.6 percent.
Supply Expense per Adjusted Discharge increased year over year and to budget for hospitals with 100-199 and 200-299 beds, and increased year over year but fell below budget for hospitals with 0-25 and 26-99 beds. Larger hospitals with 300-499 and 500 or more beds both saw year-over-year decreases for Supply Expense per Adjusted Discharge, but were above budget.
Drug Expense per Adjusted Discharge rose year over year for three bed-size cohorts, and decreased for three cohorts. The smallest hospitals with 0-25 beds saw the biggest year-over-year increase in these expenses at 8.2 percent, while the largest hospitals with 500 beds or more saw the biggest decrease at -2.0 percent.
Purchased Service Expense per Adjusted Discharge increased year over year and to budget for four of six bed-size cohorts. The exceptions were hospitals with 26-99 beds, which were up 1.0 percent year over year but -3.0 percent to budget, and hospitals with 300-499 beds, which decreased -4.5 percent year over year, but were 0.8 percent above budget expectations.
©2020 Kaufman, Hall & Associates, LLC
scroll_up.svg
kha_logo.svg
National Hospital Flash Report
menu_icon.svg
mail.svg
Share article
Sign up now for access to the latest news and reports
SUBMIT