AUSTIN, Texas — Texas hospital systems are facing escalating financial issues due to inflation, which is impacting patient care.
To stay afloat, hospital systems say they're having to cut things like preventative care options, including OBGYN services.
John Hawkins, the CEO and President of the Texas Hospital Association, is seeing the impacts.
"If you're in a rural area, you really do have the challenge of your hospital closing or certainly closing a service line," Hawkins said. "In an urban area, you're going to see more delays in care. You're going to have to travel further for care."
Texas Children's Hospital, one of the largest systems in the country, is even feeling inflation pains.
A location just opened in Austin in February. Employees recently received a letter from Texas Children's CEO Mark Wallace saying the system is "facing unprecedented economic challenges" and has decided to "momentarily pause recruiting and backfilling positions." Texas Children's is also evaluating all expenses and investments.
In a statement, a spokesperson for the system told KVUE that despite the rising costs, "Texas Children's remains steadfast in its mission to expand access to healthcare services for those in need."
Hawkins said the largest economic burden is labor amid this staffing shortage amongst almost all medical staff.
"We are dealing with increased supply costs, increased pharmaceutical costs," Hawkins said. "Hospitals have been forced to use contract staffing agencies."
Using contracted employees costs hospitals more than regular employees. On top of that, Hawkins said insurance companies are causing an administrative burden due to their practices, like prior authorization.
"Your care is delayed while you're waiting, for approval ... for that care," Hawkins said. "It can also result in delays in care upfront if you have to schedule a new procedure, and we also know it delays, discharge to lower levels of care as well."
Hawkins said in this next legislative session, they plan to ask for accountability from insurance companies, as well as more behavioral health care as an increase in mental health patients is also costing hospital systems.
Here's the full statement released by Texas Children's:
"Texas Children’s has long been recognized as a pioneer in pediatric and women’s healthcare, serving millions of patients both locally and internationally for over 70 years. With a leadership team that values transparency and a dedication to providing high-quality care, Texas Children’s has become the largest pediatric and women’s health system in the United States.
Despite facing challenges such as the loss of Medicaid coverage for many low-income families following the COVID-19 public health emergency, and a significant rate reduction from Texas Medicaid this year, Texas Children’s remains steadfast in its mission to expand access to healthcare services for those in need.
We are confident that our collaborative efforts will allow us to maintain our position as a leader in redefining healthcare. In Austin, where we are dedicated to meeting this demand, we are proud to not only contribute to the city’s economy but also make a positive impact through the employment of over 1000 individuals. We are excited about what the future holds for us in this dynamic city."