The Wisconsin Hospital Association Information Center released its annual Guide to Wisconsin Hospitals for fiscal year 2023, which shows Wisconsin hospitals and health systems are continuing to experience financial pressures, compounded by challenges from the previous year.
The report indicates a sustained period of low margins and ongoing financial challenges.
Key findings include:
- Between FY 2021 and FY 2023, hospitals experienced a 40.8% decrease in their operating margins, with 82 out of 167 hospitals reporting a decline. Fifty-five hospitals — approximately 33% of all hospitals in the state — are now operating at a loss. Health systems also reported a 117.8% decrease in operating margins, reaching -0.8% in FY 2023.
- Safety net hospitals, which serve populations with higher Medicaid coverage, are also reporting losses. In FY 2023, 38.1% of Wisconsin’s safety net hospitals — 32 out of 84 such facilities — reported financial losses, up from 33.7% in the previous year.
- Additionally, hospitals are dealing with rising costs. Supply and service costs have increased by 16.6% since FY 2021, while salary and fringe expenses have increased by 11.3%, largely due to workforce shortages.
- Emergency department utilization has also increased, with nearly 2.4 million visits in FY 2023, a 13.5% increase from FY 2021.
The full report is available here.
