In an article published yesterday by our client, McKinsey & Company, they point to a "gathering storm" that has the potential to reorder the healthcare industry and put nearly half of the profit pools at risk.
Specifically, the article points to Labor costs growing 25% between 2019 and 2022, closely followed by Pharmaceuticals at +21%, and Supplies at +18% over the same period.
Rising costs have had a significant impact on the bottom line. For example, Beckers reported that the Cleveland Clinic lost $1Billion in the first half of 2022.
Now, more than ever, hospital leaders must benchmark their costs to redesign delivery services to be cost-competitive. HPS has a cloud-based tool, CaseRateAnalyzer, that enables this critical benchmarking. Watch the short video on our CRA tool and email me if you would like a free trial subscription:
