IHA Survey Finds Upstate New York Hospitals at Critical Level of Financial Distress
Albany, NY — A survey conducted by the Iroquois Healthcare Association (IHA) shows that hospitals in Upstate New York continue to face disastrous financial circumstances. IHA is keenly aware of the challenges that Upstate and rural New York hospitals and health systems are facing. With a base of more than 50-member hospitals across 32 counties in Upstate New York, IHA regularly surveys its members to inform its advocacy, understand in real time the workforce and operational issues faced, and relay those facts to State policymakers. “Hospitals have been running on fumes for far too long,” said IHA President & CEO, Gary J. Fitzgerald. “The numbers we are seeing are striking, and will assuredly worsen without adequate intervention. It is clear that in order to preserve the health and economic viability of Upstate communities, the State needs to ensure financial assistance for our member hospitals is priority number one.” Through a survey of its members conducted at the conclusion of the third calendar quarter, IHA found that 88% of respondents have a negative or razor thin operating margin. Of those respondents, 58% are below -2% and 22% are below -10%. Adding to hospitals dire financial positions, are historic and ongoing staffing shortages. This fact forces hospitals to rely on contingent staffing, the cost of which is ballooning budget deficits and crippling hospitals. In fact, there has been a more than 50% increase in contingent staffing spending compared to last year. Alarmingly, IHA projects based on its survey that its members will astoundingly spend more than $1.2 billion on contingent staffing in 2022. Upstate Hospitals are perilously balancing safe staffing levels and financial sustainability in order to continue providing services. This simply cannot continue unaddressed. The State must provide critical financial support for the survival of Upstate healthcare. IHA’s data has long-foretold a bleak future. The future has arrived. Our hospitals need help now! Without support, we will see catastrophic repercussions that could have been avoided. Iroquois Healthcare Association IHA is a regional healthcare trade organization representing more than 50 hospitals and health systems, spanning over 28,000 square miles, across 32 counties of Upstate New York. IHA is the leading resource for facilities and professionals bringing quality health care to the region. IHA represents the unique needs of rural, small community safety-net providers to large, academic medical centers in Upstate New York’s urban areas through advocacy, education and information, cost-savings initiatives and innovative business solutions.
