Finance & Tax
It usually takes a year or more for the supply chain bottlenecks and rising wages that drive up prices to factor into the contracts that dictate what consumers and insurance plans pay.
The pandemic inflamed labor shortages that had long been endemic to health care, forcing hospitals and nursing homes to pay more for clinicians and support staff as their facilities withstood an endless wave of Covid-19 patients. | Brandon Bell/Getty Images
By Sam Sutton
10/12/2022 04:31 AM EDT
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Rising health care costs are poised to become the next big battle in President Joe Biden’s war against inflation. It’s unlikely he’ll be able to declare victory in time for a 2024 reelection bid.
Economists, business leaders and health care industry experts are warning that the wage, revenue and supply chain pressures that hammered the margins of hospitals and clinics during the pandemic are about to send health coverage and out-of-pocket medical bills through the roof.
The Federal Reserve Bank of Dallas last month estimated that the rate of health care inflation will almost double between mid-2022 and mid-2023 as insurance starts to factor in surging labor costs for hospitals and health networks.
