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Beyond providing life-saving care, Illinois hospitals are strong economic engines in their communities, pumping $108.1 billion into the state’s economy every year. With one in 10 Illinoisans working in healthcare, hospitals generate 493,000 jobs both within hospitals and in other sectors due to hospital spending.

Despite being powerful drivers of economic activity, Illinois hospitals face mounting financial challenges:

• Hospital costs have risen dramatically—increases that are not temporary.
• Inflation, which peaked at 9.1% in 2022, has meant higher prices for drugs, medical supplies and equipment.
• Labor costs have increased 10-20%, with staffing shortages forcing hospitals to rely on high-cost private staffing agencies to fill nurse vacancies.

Since 1995, hospitals have seen costs increase 85% without additional investment in hospital Medicaid rates from the state’s General Revenue Fund (GRF). Medicaid is the state’s largest health insurer, and hospitals are being strained by the shortfall between the cost to provide care and Medicaid reimbursement at less than 80 cents to the dollar.

Illinois hospitals are relying on lawmakers to pass Senate Bill 1763 for the first GRF Medicaid hospital rate increase in 28 years. Passing SB 1763 would bring a much-needed 20% across-the-board increase to hospital Medicaid base rates. Discover the facts to learn more.