From Daniel McHale, Senior Vice President, Healthcare Finance & Policy

“While CHIA’s quarterly report is a troubling pulse-check on hospitals’ financial wellbeing, we know the most daunting days are still to come. 70% of hospital health systems are already operating in the red due to a dangerous confluence of cost pressures – including unsustainably high fixed expenses, a flailing health safety net, and a rise in patients requiring more intensive services. Those challenges will only compound as major changes to Medicaid coverage and financing cause hospitals’ limited resources to be stretched even further.

“These factors live at the center of the affordability equation our state is rightfully attempting to solve. This is a valuable – and urgent – opportunity for Massachusetts to consider those pressures as we work to make healthcare more affordable while maintaining a strong system for communities across the commonwealth.”