Keegan Hellweg:
Hi, everybody. My name’s Keegan Hellweg. I’m VP of provider engagements here. It’s nice to see you, Amanda. Greetings everyone from blizzardy Boston, where we’re expecting about a foot of snow today. Exciting times. So we’re excited today to dive into our presentation. Before we do, there’s a few housekeeping items. You will notice a chat Q&A at the bottom toolbar. So if you have any questions throughout the presentation, please feel free to enter them. We will try to get to all of them at the end of the presentation. Additionally, we will be recording today’s presentation and sending it out to everyone who attended. So keep an eye out for that.
So without further ado, let’s dive right in. Today’s agenda, we are going to be discussing financial trends and challenges. So Amanda and I listened to the earnings calls of these hospitals and health systems, and some of the numbers recently have been staggering. So we’re going to discuss not only some macroeconomic trends, but some that are affecting hospitals and health systems specifically.
And in these difficult times, we would be remiss not to discuss how healthcare commercial intelligence can help you navigate these difficult times. So we’re going to discuss identifying the out migration of your patients, seeing into the four walls of your competition, ensure that you are providing the right services and specialties at the right places and the right time, and then also build awareness with the physicians and providers within your community so that they know the services that you’re providing.
So as we hop into the actual presentation, some of the trends that are causing these financial headwinds are high labor costs. This is a surprise to no one. Everyone’s experiencing that, not just healthcare. Healthcare seems to be affected a little bit more. Inflation, also affecting everyone, but specifically within hospitals and health systems, which we’ll discuss. Then we’ll talk about the shift to the retail and urgent care. Amanda has some great insights on that. I mean, everybody’s seeing that in the headlines right now, the M&A activity. And then also, the shift to the care at home. So some true financial headwinds that everyone is facing.
So let’s start off with high labor costs in 2023. And like I mentioned, this is not just specific to healthcare, but in a survey by Deloitte, almost over two-thirds of C-level hospital executives said that staffing challenges and shortages are going to impact the decisions that they make when it comes to strategy. So there’s not just a shortage of employees on the market, but they’re also costing more. So you can see that the cost of permanent labor continues to increase. So we saw a little bit of a decline in contract labor costs to at the very end of 2022 and the very start of 2023. But the permanent labor costs continue to go up.
This has been a theme of the pandemic across all industries, but healthcare, as we’ll see on the next slide, it’s been hit a little bit harder than most. So AHA actually ran a study and they found that contract labor, so think traveling nurses, non-full-time employees, that labor from 2020 to 2022 went up by a staggering 258%. Our data, as you can see, of 885 hospitals that have reported their fiscal year 2022, their total labor costs, so contract labor and full-time, went up by 111%. Amanda, I haven’t spoken with any organizations whose fee schedule has gone up 111%. Have you?
