The report, published in May, found that economywide, inflation was double the rate of Medicare payment increases in 2023. Behavioral health and several other services received reimbursements from all payer types that were below the cost to provide care.
In 2023, hospitals operated inpatient behavioral health services at a -34.3% margin, according to the AHA. The calculation is across all payer types.
Here are three facts to know:
- Inpatient behavioral health was the largest money-losing service for hospitals in 2023, according to the report. Nephrology was close behind, operating at an average -34.1% margin.
- Shortfalls in payment are especially acute among government payers, according to the AHA. In 2023, Medicare payments for inpatient behavioral care were -38.9% below the cost to hospitals to provide care.
- Outpatient behavioral care was also among the outpatient services hospitals operate at the largest losses. In 2023, hospitals provided outpatient behavioral services at a -31.7% margin on average. Hospitals saw the largest losses on burn and wound outpatient care, providing these services at a -42.9% margin.
Read the full report here.
