CHA Joins FOX61 To Discuss Key Findings of Hospital Financial Health Report

The Connecticut Hospital Association (CHA) continues to raise awareness about hospitals’ and health systems’ ongoing financial challenges ahead of the 2025 Legislative Session.  Paul Kidwell, senior vice president of policy, CHA, joined FOX61’s The Real Story to discuss key findings of the newly released 2024 CHA Hospital Financial Health Report.

“On a whole, the state’s hospitals are still operating on a negative margin of -0.5%,” Kidwell said.  “A negative margin cannot be sustained for any amount of time.  While we do see improvement, we really need to improve more over the next couple of years.”

When asked why the state should prioritize support for Connecticut hospitals and health systems, Kidwell explained that healthcare institutions are “pillars in their communities.”

“They’re always there when we need them, not just in times of emergency but in trying to make sure people stay healthy, manage their chronic conditions so they don’t end up in the hospital … It’s more than just what’s happening in the four walls of the hospital.”

Additionally, Kidwell underscored the impact of substantial Medicaid and Medicare shortfalls, which amounted to a collective loss of $1.43 billion and $1.38 billion, respectively, for Connecticut hospitals in 2023.

“If you think about a family budget, you can’t really make it if you’re only bringing in 62 cents of the dollar that it’s costing you to survive,” Kidwell said, noting that ensuring reimbursement rates adequately cover the cost of care could ease the squeeze on hospitals.  “We understand the need to be responsible stewards of the taxpayers’ dollars.  We think investments in Medicaid are good, fiscally responsible investments.”

In the interview, Kidwell also remarked that during the upcoming session, CHA will continue to advocate for efficiency improvements to the state’s Certificate of Need (CON) process.  CHA is also committed to protecting patients from unfair health insurance practices such as burdensome prior authorization processes that can delay care.

The CHA Hospital Financial Health Report, supported by a new Kaufman Hall analysis, details how Connecticut hospital expenses are rising at rates that outpace national growth and increases in the Northeast/Mid-Atlantic region. The report also details how Connecticut hospitals are collectively operating at a loss and government payer underpayment is contributing to and exacerbating these financial pressures.  On December 18, Connecticut hospital and health system leaders joined CHA for a press conference to outline the analysis and accompanying report.

Click here to watch the full interview on FOX61.

Click here for more information on the financial pressures impacting Connecticut’s hospitals and health systems.