WA hospitals facing ‘unsustainable’ financial losses, in danger of cutting services

Washington’s hospitals are facing massive financial losses after the first quarter of 2022, placing the state’s health care system in the most precarious situation many hospital leaders say they’ve seen in their lives.

According to a recent survey conducted by the Washington State Hospital Association, hospitals across the state suffered a net loss of about $929 million in the first three months of 2022. While operating revenue increased by 5%, operating expenses increased by 11%, which — combined with nonoperating investment losses — resulted in a total loss of about 13%.

“The financial challenges revealed by the survey are really quite grave,” WSHA CEO Cassie Sauer said at a news briefing Thursday. “Hospitals’ ability to sustain all the health care services they provide in the face of a dire financial situation is in question.”

The hospitals that responded to the survey represent about 97% of all inpatient, acute beds statewide. All 52 urban hospitals and health systems, as well as 18 of 34 independent, rural hospitals, reported losses.

If the trend continues, Sauer said, hospitals will likely have to cut certain services or close inpatient units. The biggest concern, she added, is that some health care systems could be forced to close or file for bankruptcy if the financial losses persist.