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August 2019
Expense
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Expense by Region *
Most regions saw unfavorable year-over-year performance in Total Expense per Adjusted Discharges in July. The West was the exception, with a -0.5 percent decrease in total expenses year over year. Labor Expenses per Adjusted Discharge increased year-over-year for the South, Northeast/Mid-Atlantic, and Midwest, but were down about 5 percent for both the Great Plains and the West. Year-over-year performance in Non-Labor Expense per Adjusted Discharge was unfavorable in the Great Plains, Northeast/Mid-Atlantic, and Midwest, but remained relatively flat in the South and declined slightly in the West.
Labor
Non-Labor
Supply
Drug
Purchased Service
FTE/AOB
Labor Expense
Non-Labor Expense
Supply Expense
Drug Expense
Purchased Service Expense
FTE per AOB
National Expense Observations
Expense indicators were mixed in July at hospitals across the country. While month-over-month performance was largely favorable, year-over-year performance was unfavorable across most metrics. Total Expense per Adjusted Discharge rose 2.9 percent year over year for its third consecutive month of increases, but decreased -1.7 percent month over month.
Adjusted Discharges increased 3.5 percent month over month, while Labor Expenses per Adjusted Discharge decreased -0.8 percent. This suggests organizations may be tightening labor expense management as they continue to focus on volume growth. Year over year, Labor Expense per Adjusted Discharge increased 0.9 percent.
Full-Time Equivalents (FTEs) per Adjusted Occupied Bed (AOB) increased 0.9 percent month over month, but decreased -1.1 percent year over year. Meanwhile, Purchased Service Expense per Adjusted Discharge increased only slightly, at 0.8 percent year over year, indicating that additional patient volumes are being managed utilizing internal resources.
Non-Labor Expense per Adjusted Discharge increased 3.7 percent year over year, contributing to the unfavorable year-over-year variance in Total Expense per Adjusted Discharge. Supply Expense per Adjusted Discharge increased 8.3 percent year over year, and is the most significant driver to the year-over-year increase in Non-Labor Expenses.
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
(2.0%)
(1.7%)
2.9%
Total_Exp_Per_Adj_Discharge.svg
Labor Expense per Adj. Discharge
(3.6%)
(0.8%)
0.9%
Labor_Exp_Per_Adj_Discharge.svg
FTEs per AOB
(0.6%)
0.9%
(1.1%)
FTEs_Per_AOB.svg
Non-Labor Exp per Adj. Discharge
(1.6%)
(1.7%)
3.7%
Non_Labor_Exp_Per_Adj_Discharge.svg
Supply Expense per Adj. Discharge
(1.4%)
(1.3%)
8.3%
Supply_Exp_Per_Adj_Discharge.svg
Drug Expense per Adj. Discharge
(1.6%)
(5.7%)
3.0%
Drug_Exp_Per_Adj_Discharge.svg
Purchased Service Exp per Adj. Discharge
(3.3%)
(1.4%)
0.8%
Purchased_Service_Exp_Per_Adj_Discharge.svg
By Region
By Bed Size
National Observations
Expense by Bed Size
Total Expenses per Adjusted Discharge showed unfavorable year-over-year variances in July for most bed-size cohorts, with hospitals of 500 beds or more showing the largest year-over-year increase at more than 6 percent. Total Expenses per Adjusted Discharge at hospitals with 26-99 beds, however, were essentially flat.
Year-over-year performance for FTEs per AOB varied across regions, increasing slightly for hospitals with 26-99 beds and 500 beds or more, and decreasing for all other cohorts. Hospitals with 100-199 beds saw the largest year-over-year decrease in FTEs per AOB at more than -5 percent.
Non-Labor Expenses per Adjusted Discharge saw unfavorable year-over-year performance for most bed-size cohorts, with the exception of hospitals with 26-99 and 100-199 beds.
Labor
Non-Labor
Supply
Drug
Purchased Service
FTE/AOB
Labor Expense
Non-Labor Expense
Supply Expense
Drug Expense
Purchased Service Expense
FTE per AOB
By Region
By Bed Size
National Observations
©2019 Kaufman, Hall & Associates, LLC
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