Author: Freddie Sanchez

Molly Gamble (Twitter) January 30, 2023

Eleventh-hour financial improvements were not enough for U.S. hospitals, making 2022 “the worst financial year for hospitals and health systems since the start of the COVID-19 pandemic,” according to Kaufman Hall. 

The declaration is hardly a surprise as hospitals’ median monthly margins lingered in the red throughout the first 11 months of 2022, starting with the -3.4 percent recorded in January, driven by the omicron surge. December was the only month where hospitals realized a positive year-to-date operating margin at 0.2 percent, according to Kaufman Hall’s latest “National Flash Hospital Report” — based on data from more than 900 hospitals.

Approximately half of U.S. hospitals finished the year with a negative margin, Kaufman Hall reported.

Labor expenses were a constant source of pressure throughout the year, with both a competitive labor market and greater reliance on more expensive contract labor to meet staffing demands driving hospital expenses that their bottom lines could not outdo, even with increased patient volumes. 

Hospital labor expenses grew by 2 percent from November to December, and total direct expense per provider FTE grew to $592,430 in the fourth quarter of 2022, a 5 percent increase compared to the fourth quarter of 2021.

“As we saw throughout 2022, the labor market was unkind to hospitals and provider groups,” Erik Swanson, senior vice president of data and analytics with Kaufman Hall, said. “Given that labor and non-labor expenses are unlikely to recede in 2023, hospitals can embrace better workforce management strategies and leverage their relationships with post-acute care settings to maximize current patient volume trends.”

The analysis also found hospitals experienced increased patient volumes, particularly in outpatient settings as the front door of the hospital shifted away from the emergency department and toward ambulatory and outpatient surgical settings. The net patient revenue per provider FTE rose to $397,493, an 8 percent increase year over year.

“The pandemic fueled a fundamental shift in how patients are choosing to access their routine care,” Matthew Bates, managing director and physician enterprise service line lead with Kaufman Hall, said. “Providers are seeing more patients than ever, particularly in primary care settings, and care is moving away from hospitals. Medical groups should seek to improve individual provider productivity and efficiently integrate advanced practice providers to meet the increase in volume and successfully bend the cost curve.”

Hospitals suffer worst financial year since the pandemic (beckershospitalreview.com)

Paige Twenter – Friday, January 13th, 2023

Eight drugmakers together have 21 oseltamivir presentations — a common flu drug sold under the brand name Tamiflu — on back order and allocation, and most cannot estimate a resupply date, according to the American Society of Health-System Pharmacists. 

Most drugmakers did not share with ASHP a reason for the shortage, but one cited the supply issue as a reason for high demand. The shortage of the common flu drug is not national, according to the FDA, but some local pockets are noting increased demand and shortages. 

Here’s how the oseltamivir shortage breaks down as of Jan. 11, per ASHP:

• Alembic Pharmaceuticals has one presentation on back order with a resupply date of late January and two others on allocation.
• Amneal Pharmaceuticals has four oseltamivir products on back order.
• Camber Pharmaceuticals has three on allocation.
• Lupin Limited has four on allocation.
• Macleods Pharma has one on back order with a release date of early February and another on allocation.
• Novadoz has three on allocation.
• Teva Pharmaceuticals has one on intermittent back order and is resupplying as product becomes available. 
• Zydus Lifesciences has one on allocation.

21 flu drugs in shortage, most with no resupply date (beckershospitalreview.com)

Molly Gamble

Hospitals experienced a slight boost to operating margins in November, but not enough to restore the median negative margins that persisted for 2022 to date.

Kaufman Hall’s December “National Flash Hospital Report” — based on data from more than 900 hospitals — found hospitals’ median operating margin was -0.2 percent through November, a slight improvement from the median of -0.3 percent recorded a month prior. 

A 1 percent decline in expenses from October to November drove the eleventh-hour improvement to margins and tipped the scales on hospitals’ relatively flat revenue. Additionally, hospitals saw labor expenses decrease 2 percent in November, potentially driven by less reliance on contract labor. 

The median -0.2 percent margin recorded in November 2022 marks a 44 percent decline for margins in 22 year-to-date compared to 2021 year-to-date. Kaufman Hall’s index shows hospitals’ median monthly margins have been in the red throughout 2022, starting with the -3.4 percent recorded in January, driven by the omicron surge. November is tied with September as hospitals’ best month of the year, with both sharing a median margin of -0.2 percent. 

Outpatient care marks one of the brighter spots for hospitals’ finances, with outpatient revenue up 10 percent year-over-year while inpatient revenue was flat over the same time period. 

“The November data, while mildly improved compared to October, solidifies what has been a difficult year for hospitals amidst labor shortages, supply chain issues and rising interest rates,” Erik Swanson, senior vice president of data and analytics with Kaufman Hall, said. “Hospital leaders should continue to develop their outpatient care capabilities amid ongoing industry uncertainty and transformation.”

Hospital margins see eleventh-hour improvement (beckershospitalreview.com)

Paige Twenter 

The number of amoxicillin products on back order has increased to 44 after months of the antibiotic being out of stock, according to the American Society of Health-System Pharmacists. 

Depending on the ASHP’s website or the FDA’s drug shortage database, between two dozen and three dozen oral presentations of amoxicillin have been in shortage because of high demand since late October. At the time, the shortage was expected to resolve by the end of 2022.

As of Dec. 8, most drugmakers told ASHP they could not estimate a resupply date, but Teva Pharmaceuticals has release dates in January and February, and Hikma Pharmaceuticals short-dated their allocated supply for August 2023. 

The worsening supply issue could be connected to the surge in viral infections even though amoxicillin is not a recommended treatment for COVID-19, flu or respiratory syncytial virus infections. Amoxicillin is not recommended to treat RSV cases, but some physicians will prescribe antibiotics when they are not medically necessary. 

The original drug shortage may have sent a ripple effect through amoxicillin/clavulanate products — the recommended backup treatment for some infections if amoxicillin is not available — because 29 of them were in short supply as of late November. 

Amoxicillin shortage worsens to 44 products, resupply dates pushed to 2023 (beckershospitalreview.com)

Paige Twenter 

From tracheostomy tubes and syringes to amoxicillin and dozens of other drugs, medical supply chains are hindered by ongoing issues to access raw materials and enough staff, The State Journal reported Dec. 4. 

“I’ve been doing this [for] about 25 years,” Bryan LaBuda, WVU Medicine director of enterprise materials management, told The State Journal. “I would say this is unprecedented. Obviously, there’s always back orders and things like this, but in my career I’ve never seen the volume and the variety of back orders. That’s 100 percent due to the pandemic, which turned into labor shortages, as well.”

Other hospital supply chain leaders have lamented the labor shortage and higher prices for raw materials, which are more scarce partly because of inflation and partly because of geopolitical frictions. 

Mr. LaBuda told The State Journal one way to counteract the persistent issues are “strategic vendor partnerships that have a focus on domestic manufacturing” — a growing trend called nearshoring and friend-shoring. WVU Medicine is also building its own distribution center to combat future supply chain hiccups.

Volume of backorders is ‘unprecedented,’ says WVU Medicine materials management director (beckershospitalreview.com)

Mariah Taylor (Email) 

As the “tridemic” of flu, COVID-19, and respiratory syncytial virus continues, pediatric hospitals are running into a new problem: a shortage of medical-grade cribs, CNN reported Dec. 5.

Grand Rapids and Southfield, Mich.-based Corewell Health ordered more than 50 cribs and have brought out both specialized and non-specialized cribs from storage to meet the demand of patients, hospital officials told CNN.

They aren’t the only ones struggling to meet demand.

“These shortages vary from items being on backorder with no estimated shipping date to product discontinuation without notice. The reasons include transportation issues and labor shortages,” Cynthia Zheng, director of pharmacy operations and support services at Wilmington-based Nemours Children’s Health Delaware Valley, said in the report. “At Nemours Children’s Health, these supply challenges are magnified due to pediatric populations needing more specialized equipment to accommodate different stages of growth. In addition, the high volumes as a result of an early spike in RSV have only put more strain on an already stressed system.”

Ventilators are also in high demand due to the RSV surge. CNN reported that the American Hospital Association said it received its first non-COVID-19-related request to the dynamic ventilator reserve since its launch in April 2020.

Crib shortages send pediatric hospitals scrambling (beckershospitalreview.com)

November 29, 2022 – HIDA has urged Congress to take steps to maintain the freight rail system and avert any threatened labor disruption. 

“Transportation is a healthcare issue,” said HIDA President and CEO Matthew J. Rowan. “As Americans weather a difficult flu season and a surge in pediatric RSV cases, this is no time to disrupt the medical supply chain. If the parties cannot reach agreement, then Congress must step in and pass legislation to keep the freight rail system operating and America’s supply chains moving.” 

HIDA has encouraged its members to contact Congress and support a legislative resolution to the rail labor dispute. HIDA is at the forefront of healthcare organizations who have joined multi-association letters to President Biden and congressional leadership urging action to avert a rail strike. 

Learn More 

Medical distribution industry urges Congress to prevent freight rail disruptions (repertoiremag.com)

Paige Twenter 

Among three drugmakers, 29 amoxicillin and clavulanate oral presentations are on allocation or back order, according to the American Society of Health-System Pharmacists. 

The amoxicillin and clavulanate combination is a penicillin antibiotic. London-based Hikma Pharmaceuticals has 10 products on allocation, Switzerland-based Sandoz has 16 on back order without an estimated resupply date and Israel-based Teva Pharmaceuticals has three on back order with resupply dates between late November and early January. 

Amoxicillin has been in shortage for weeks, and the FDA confirmed the issue in late October. As of Nov. 18, resupply dates have been pushed to be between early December 2022 and August 2023, depending on the company and the product.

29 amoxicillin and clavulanate products on back order (beckershospitalreview.com)

Naomi Diaz – Friday, November 18th, 2022

Texas Attorney General Ken Paxton has launched an investigation into Epic Systems over a policy that allegedly prevents parents from accessing their children’s medical records once they become teenagers.

Mr. Paxton sent a civil investigative demand to the EHR vendor after he began an investigation into Houston-based Memorial Hermann regarding an alleged policy that doesn’t allow parents to access their children’s medical records if the child is between 13 and 17 years old.

Mr. Paxton said his investigation into the health system further revealed that Epic “may have additional information regarding these concerns,” according to a Nov. 17 press release from the attorney general.  

“Texas law forbids any hospital or corporate entity from denying parents access to their children’s medical records, and we’re going to ensure that the law is followed,” Mr. Paxton wrote in his press release.

Epic declined to comment. 

A spokesperson for Memorial Hermann told Becker’s that it was not aware of any specific patient complaints about access to records and first learned about the complaint in question via the attorney general’s press release. 

Memorial Hermann still operates on an Oracle Cerner EHR system and will transition to Epic beginning in 2023. The health system said its implementation of Epic will take “multiple years.”

Texas AG to investigate Epic’s role in denying patients’ access to medical records (beckershospitalreview.com)

Erica Carbajal – Friday, November 18th, 2022

Flu activity metrics are quickly ramping up in the US, with 8,707 lab-confirmed flu patients admitted to hospitals for the week ending Nov. 12, according to the CDC’s latest FluView report. 

That’s up from the more than 6,400 flu patients hospitalized the week prior. The CDC now estimates there have been at least 4.4 million flu cases, 38,000 hospitalizations and 2,100 flu-related deaths so far this season. The CDC emphasizes that data in the reports are preliminary and may change as more data become available. 

Seven more notes: 

1. Fourteen states (Alabama, Arkansas, Tennessee, South Carolina, Virginia, New Mexico, Texas, Mississippi, Georgia, North Carolina, Maryland, New Jersey, Colorado and Kentucky), the District of Columbia and New York City reported very high flu activity for the week ending Nov. 12. Thirteen states (California, Nevada, Washington, Arizona, Kansas, Nebraska, Louisiana, Illinois, Indiana, Florida, Ohio, New York and Connecticut) and Puerto Rico reported high flu activity. The remaining states reported low or minimal activity. 

2. Two flu-associated deaths were reported to the CDC for the week ending Nov. 12. This brings the total number of influenza-associated pediatric deaths to seven for the 2022-23 season. 

3. The overall cumulative hospitalization rate is 8.1 per 100,000 — the highest it’s been this early in the season since the 2010-11 flu season. 

4. Clinical laboratories tested 103,830 specimens for influenza for the week ending Nov. 12. Of those, 14.7 percent were positive, most of which for influenza A. The positivity rate was 12.8 percent the previous week. 

5. The percentage of visits to an outpatient provider for influenza-like illness — meaning fever plus cough or sore throat, not lab-confirmed flu — was 5.8 percent for the week ending Nov. 12. This is above the national baseline of 2.5 percent.

6. Nationwide, 1.2 percent of 14,161 long-term care facilities reported at least one flu-positive test among residents for the week ending Nov. 5.

7. The national flu, pneumonia and/or COVID-19 mortality rate is 9.4 percent, which sits above the epidemic threshold of 6.2 percent for the week. Among the 2,175 deaths reported for the week, 926 had COVID-19 and 70 had the flu listed as an underlying or contributing cause of death. “While current [flu, pneumonia and/or COVID-19] mortality is due primarily to COVID-19, the proportion due to influenza remains small but is increasing,” the CDC said.

Nearly 9,000 flu patients hospitalized last week: 8 FluView notes (beckershospitalreview.com)