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January 2020
Expense
Expense by Region *
Total Expense per Adjusted Discharge rose year over year for hospitals in the South, Northeast/Mid-Atlantic, and Midwest, with the Midwest seeing the largest increase at 1.5 percent, up 5.8 percent compared to budget. Hospitals in the West saw Total Expense per Adjusted Discharge remain essentially flat year over year, while hospitals in the Great Plains saw the only year-over-year decrease at -0.3 percent.
Labor Expense per Adjusted Discharge rose year over year and was above budget in the West and Northeast/Mid-Atlantic, and rose year over year but fell below budget in the South. Hospitals in the Great Plains and Midwest both saw year-over-year decreases in Labor Expense per Adjusted Discharge of -0.4 percent and -1.1 percent, respectively.
Labor Expense
Non-Labor Expense
Supply Expense
Drug Expense
Purchased Service Expense
FTE per AOB
FTEs per AOB fell year over year and were below budget across all regions. Hospitals in the Great Plains saw the greatest decreases at -16.1 percent year over year and -19.8 percent to budget, while hospitals in the Northeast/Mid-Atlantic saw the smallest decreases at -0.7 percent year over year and -1.7 percent to budget.
Non-Labor Expense per Adjusted Discharge increased year over year and compared to budget in the Great Plains, Northeast/Mid-Atlantic, and Midwest, with the Great Plains seeing the largest year-over-year increase at 8.5 percent. The West was the only region to see a year-over-year decrease in Non-Labor Expense per Adjusted Discharge at -4.2 percent, falling -2.4 percent below budget.
Hospitals across all regions saw year-over-year increases in Supply Expense per Adjusted Discharge, ranging from a low of 2.8 percent in the Midwest, to a high of 8.9 percent in the Northeast/Mid-Atlantic. All regions also saw year-over-year increases in Drug Expense per Adjusted Discharge, with hospitals in the Northeast/Mid-Atlantic experiencing the greatest increase at 14.0 percent. The Great Plains saw the biggest year-over-year increase in Purchased Service Expense per Adjusted Discharge at 19.1 percent, performing 21.7 percent above budget. Hospitals in the South and Midwest also saw year-over-year increases for this metric, while hospitals in the West and Northeast/Mid-Atlantic saw year-over-year decreases.
National Expense Observations
Hospitals nationwide saw expenses increase year over year across most metrics in December, but decrease month over month. Total Expense per Adjusted Discharge rose 0.8 percent year over year, but fell -1.8 percent month over month, performing in line with budget expectations.
Labor Expense per Adjusted Discharge rose 1.3 percent year over year, but fell -1.9 percent month over month, performing just 1.1 percent above budget. Full-Time Equivalents (FTEs) per Adjusted Occupied Bed (AOB) were down -4.0 percent year over year, -1.5 percent month over month, and -5.5 percent below budget.
Meanwhile, Non-Labor Expense per Adjusted Discharge rose 0.7 percent year over year, fell -1.7 percent month over month, and was -0.9 percent below budget expectations. Supply Expense per Adjusted Discharge was up 6.2 percent year over year, but down -0.9 percent month over month, and 1.2 percent to budget.
Drug Expense per Adjusted Discharge saw the biggest year-over-year increase at 9.7 percent, and was up 1.2 percent month over month, but fell -2.2 percent below budget. Purchased Service Expense per Adjusted Discharge rose 2.6 percent year over year, but was down -3.5 percent month over month, and 2.8 percent above budget.
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
0.0%
(1.8%)
0.8%
total_expense_per_adj_discharge.svg
Labor Expense per Adj. Discharge
1.1%
(1.9%)
1.3%
labor_expense_per_adj_discharge.svg
FTEs per AOB
(5.5%)
(1.5%)
(4.0%)
ftes_per_aob.svg
Non-Labor Exp per Adj. Discharge
(0.9%)
(1.7%)
0.7%
non_labor_expense_per_adj_discharge.svg
Supply Expense per Adj. Discharge
1.2%
(0.9%)
6.2%
supply_expense_per_adj_discharge.svg
Drug Expense per Adj. Discharge
(2.2%)
1.2%
9.7%
drug_expense_per_adj_discharge.svg
Purchased Service Exp per Adj. Discharge
2.8%
(3.5%)
2.6%
purchased_service_expense_per_adj_discharge.svg
Expense by Bed Size
Total Expense per Adjusted Discharge increased year over year for five of the six bed-size cohorts in December. The smallest hospitals of 0-25 beds saw the biggest increase at 2.7 percent. Hospitals with 26-99 beds were the only cohort to see a year-over-year decrease at -0.5 percent.
Most bed-size cohorts saw year-over-year increases in Labor Expense per Adjusted Discharge, with increases ranging from 0.4 percent for hospitals with 300-499 beds to 2.9 percent for hospitals with 0-25 beds. Hospitals with 26-99 beds was the only cohort to see a year-over-year decrease for this metric at -1.0 percent. FTEs per AOB fell year over year for all bed-size cohorts, with 26-99 bed hospitals seeing the greatest decrease at -10.2 percent.
Labor Expense
Non-Labor Expense
Supply Expense
Drug Expense
Purchased Service Expense
FTE per AOB
Four bed-size cohorts saw year-over-year decreases in Non-Labor Expense per Adjusted Discharge in December, with the largest hospitals of 500 beds or more seeing the biggest decrease of -1.4 percent. By contrast, the smallest hospitals of 0-25 beds saw the biggest year-over-year increase in Non-Labor Expense per Adjusted Discharge, up 8.1 percent compared to December 2018.
All bed-size cohorts saw year-over-year increases in both Supply Expense per Adjusted Discharge and Drug Expense per Adjusted Discharge in December. Hospitals with 200-299 beds saw the greatest year-over-year increase in Supply Expense per Adjusted Discharge at 7.8 percent, while hospitals with 0-25 beds saw the greatest year-over-year increase in Drug Expense per Adjusted Discharge at 30.0 percent.
Purchased Service per Adjusted Discharge was up year over year for four of the six bed-size cohorts. The nation’s largest hospitals with 500 beds or more saw the greatest year-over-year increase at 9.1 percent, while hospitals with 0-25 and 26-99 beds saw year-over-year decreases.
©2020 Kaufman, Hall & Associates, LLC
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