University Hospitals experienced operating losses in 2022 and 2023, due largely to rising inflation, staffing costs and the purchase of a new patient portal system.CLEVELAND, Ohio — The purchase of a new My Chart patient portal powered by Epic, increased employee costs and inflation contributed to University Hospitals’ second operating loss in as many years, the hospital system said.
“Like many in the healthcare industry, we are facing unprecedented financial challenges in providing healthcare to the people of our community,” said William A. Young, Jr., CEO of Southwest General,“The cost of providing healthcare services is rising at a much higher rate than the reimbursement we receive for those services. To improve our financial situation, we have adopted a performance improvement plan to enhance revenue, grow services and improve operating efficiency.
The Epic system helped streamline billing and made generating and transferring medical records easier. It has enabled physicians to see more patients, and makes it easier for patients to book appointments. Inflation hits hospitals hard because most of their revenue comes from Medicare and Medicaid, which generally pay less than the cost of medical services, Bond said.