1 min read

Family Healthcare Costs Rise Due to Labor and Supply Chain Issues

Family Healthcare Costs Rise Due to Labor and Supply Chain Issues


Recently, healthcare costs have risen due to several reasons. Since the pandemic in 2020, hospitals have seen increased costs due to healthcare worker conditions, medical resources, and problems with distribution channels in supply chain. Particularly, there was a recent report that was released saying costs for an average family of four shot up to $32,065. That is a 5.6% increase from 2022 and that can be mostly attributed to inflation.

While employment stays fairly consistent in the healthcare industry, workers have recently been unhappy with their health plan. This has resulted in many employees switching plans which has caused increased initial payments for the new plan and less benefits. Despite this, in some areas like nursing and care facilities, employees are still needed. Combined with distribution and resource issues in the supply chain, hospitals are actively looking to fix this problem. Another important fact to note, is inflation for the healthcare industry still has yet to catch up with normal economic inflation, so costs will likely rise in the next couple months.

Other factors that contribute to these rising costs include higher drug prices, technology and facility improvements, and administrative costs. Pharmaceutical costs have always played a significant role in the constant struggle to manage financial issues in healthcare. Additionally, the facility and technology management required in urgent care and hospital spaces only make it more difficult to keep costs low. Paperwork and insurance related documents also have made it more difficult for hospitals to manage their finances, due to the complex nature of legal requirements and information that can be overlooked.

The recent surge in family healthcare costs can be attributed to labor and supply chain issues within the healthcare industry. Dissatisfaction among healthcare workers with existing health plans, combined with disruptions in the supply chain and the industry's slow response to general economic inflation, has led to significant cost increases for families seeking medical care. Efforts are underway to mitigate these challenges and stabilize healthcare costs, but it may take time for the situation to improve.


Have You Assessed the Risk of Fraud in Your Company?

Small businesses are particularly susceptible to fraud as these companies have fewer resources and less segregation of duties. Many business owners...

Read More