Nearly Ten Percent of Texas Hospitals Are at Risk of Closing
The number of hospitals at risk of closure has doubled since 2020, with 9.2 percent of all Texas hospitals at risk of closure, according to a report from the healthcare consulting management company KaufmanHall commissioned by the Texas Hospital Association. The report also found that 47.4 percent of hospitals operated with a negative margin this year.
Both of these figures are increases from pre-pandemic levels. In 2019, only 4.7 percent of hospitals were at risk of closure, and 33.9 percent had a negative margin. After a nice 2021 for hospitals where the operating margin was 12.5 percent higher than pre-pandemic levels, margins are down 24.1 percent in 2022 compared to before COVID-19.