How Has Inflation Impacted Healthcare?

Inflation is a challenge in 2022, and it looks like inflation may continue to be an issue into and through 2023. Healthcare is an industry that sometimes doesn’t feel inflation as much as others, but have things changed this time around? If so, how much has inflation impacted healthcare, and are there ways to save on healthcare inflation?

Why Inflation Doesn’t Always Directly Impact Healthcare

Inflation often bypasses producing a direct hit on healthcare for two reasons. First, healthcare is something everyone needs at some point, and second, healthcare costs and insurance agreements are usually fixed in place years in advance. The difference in 2022, however, is that, as demonstrated by the Covid-19 pandemic, the public has become accustomed to limited healthcare options.

Also, despite planning, costs of other goods and services are going up, meaning costs for everything related to providing healthcare are going up. While services themselves may not cost more to provide, the cost of a new imaging machine delivery or new office supplies has probably risen.

Paying Employees

Another consideration is that there are inflation forces at play when it comes to wages for healthcare workers. Although many doctors have fixed agreements with large healthcare providers, office staff, nursing staff, janitorial staff and other people working in healthcare facilities have seen their costs increase.

At the same time, due to inflation, wages being offered by other industries are also exploding. This can lead to stiffer competition for healthcare employers who need to retain top talent, meaning the need to pay out greater compensation could be a factor.

Cutting Costs to Fight Inflation

One way to save on healthcare inflation is to look for ways to reduce costs. These reductions can be difficult to make in healthcare, as virtually every expense has an important purpose. Although you would never want to compromise on life-saving technologies and medicines, your facility may consider looking for ways to reduce everyday bills.

Likewise, you can reduce the impact of inflation by examining various metrics at your workplace to see where costs are high. If you don’t take the time to engage in analytics, you may miss opportunities to reduce spending, so break out the spreadsheets and start looking over your datasets.

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