RCM Challenges: Declining Profit Margins

Ashish Kumar Aggarwal & Leigh Poland

April 25, 2023

Currently in the U.S., hospitals have been seeing abysmal profit margin numbers. A recent research report showed that since the start of the pandemic, many hospitals are operating at a loss. There are many systemic causes, ranging from labor shortages and costs, supply chain issues for equipment, and the general increased costs in every facet of the economy due to inflation.

Why are hospitals facing declining profit margins, and what are some solutions that could help turn this around?

On the latest episode of RCMchat, host Michelle Dawn Mooney chatted with two senior team members from AGS Health, Leigh Poland, Vice President of Coding Service Line, and Ashish Kumar Aggarwal, Senior Vice President of Operations and Process Excellence, about the subject. On the show the two discussed with Mooney the cause and effect that has led to hospitals seeing declining profit margins and several solutions that can help remedy the downward trend.

Mooney, Poland, and Aggarwal also talked about the pandemic’s role in declining margins and also …

  • Reasons for why labor costs are also rising
  • How older patients and patients with chronic conditions have increased healthcare demands
  • Other contributing factors that are playing a role in the declining profit margins


Questions? We're here to help.

Any comments or questions for our experts? Want to schedule a meeting to talk about how AGS Health can help you? Simply fill out the form and we'll be in touch shortly.

Podcast – Declining Profit Margins