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Illinois hospitals are confronting financial pressures from dramatically higher labor, drug and supply costs while struggling to fill staffing vacancies. The stress on hospitals is impacting their ability to care for patients and invest in patient care.

In an interview with Crain’s Chicago Business last month, J.P. Gallagher, president and CEO of NorthShore - Edward-Elmhurst Health, said many Illinois hospitals were in the red last year, including at NorthShore, the third largest health system in the state.

“All of us are making difficult decisions around cost reductions and looking at more efficient ways of delivering care,” Gallagher said. “We have felt the pressure and, candidly, the pain of a labor shortage and costs in terms of attracting and retaining and keeping positions filled in an environment where our reimbursement has not changed.”

Hospital leaders are asking state legislators to increase by 20% hospital Medicaid base rates, which now reimburse only about 80% of the cost of care. The provision, in Senate Bill 1763, would mean the first General Revenue Fund (GRF) Medicaid hospital rate increase in 28 years.

Research by the Illinois Health and Hospital Association shows hospital expenses have increased 85% since 1995, while Medicaid GFR hospital reimbursement has remained flat. Discover the facts to learn more.