Nebraska hospitals experienced financial crash

in 2022. Recovery is NOT projected in 2023.

Nebraska hospitals are facing a critical financial crisis. The overall costs to provide

patient care in Nebraska has soared 21.3% in the three years from 2020 through

2022. Hospital workforce costs are up 26.8% during this period, medical supply costs

are up 25.4%, and drugs are up 42.5%.

During this period, the average annual Medicaid provider rate (state) increase was 2%

a year and the average Medicare (federal) provider rate increase was 2.9% annually.

NET OPERATING MARGIN (2021-2022)

Ipps Critcal Access Hospitals System All HOSPITALS

15%

10% 55% OF NEBRASKA

HOSPITALS OPERATED AT

5%
A NEGATIVE MARGIN AT

THE END OF 2022.

0%

-5%
2021 2022
93 OF NEBRASKA HOSPITAL
Soaring costs and stagnate reimbursement rates
CEOS DESCRIBE THE FISCAL
have created an unstable financial footing for some
OUTLOOK OF THEIR
Nebraska hospitals and a crisis for others.
HOSPITAL FOR 2023
The average net operating margin for Nebraska
AS CHALLENGING
hospitals plummeted 72% from 2021 to 2022,

dropping from 6.6% percent in 2021 to 1.8% last

year. Nebraska hospitals project these unsustainable

margins will continue in 2023, putting health care

services at risk.
AVERAGE DROP IN Net
OPERATING margin (2021-2022)

ALL iPPS CAH System

-72% -69% -61% -113%

This bleak financial outlook is causing hospitals to reevaluate the services they are
able to provide in Nebraska communities. The Nebraska Hospital Association
recently surveyed its members about services hospitals reduced or eliminated in
2022. Here’s what was identified:

Services Reduced or Eliminated by Nebraska Hospitals in 2022

Reduced inpatient capacity
Reduced inpatient behavioral health capacity
Reduced hours for outpatient services
Reduced orthopedic care
Reduced rehabilitation services
Reduced home health services
Reduced hospice services
Reduced admission to skilled-nursing care
Reduced nursing home census
Closed inpatient geriatric behavioral health unit
Closed nursing home
Closed free standing imaging sites in community
Eliminated nephrology services
Eliminated obstetric services
Eliminated hospice services
Eliminated home health services
Nebraska hospital leaders expect service like these to continue to be impacted

without significant increases in reimbursement rates from Medicaid, Medicare, and

commercial insurance.