Hospitals cite drug and supply shortages, rising patient acuity and negative margins

Michigan hospital representatives told the House Insurance Committee that supply and drug shortages, rising patient acuity and long‑term payment shortfalls from Medicare and Medicaid are increasing costs and squeezing hospital margins.

Laura Pell, executive vice president for government relations and public policy at the Michigan Health & Hospital Association, described historic shortages of chemotherapy drugs and intravenous fluids as examples. She told the committee that one health system's pharmacist could not…