Inpatient Perspective Payment System( IPPS) payment increases from 2022-2024 market basket updates. Inflation measured using CPI-U from BLS using data between October 2021 and October 2024.
26,000 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000
Rising Costs of Outpace Medicare Payment Increases
14.1 %
Inflationary Cost
Note: Number is higher as providers will be counted multiple times if listed as attending at more than one hospital.
Source: UB Hospital Billing Data
5.1 %
IPPS Payment Increase
Numbers of Unique Providers Listed as Attending at a West Virginia Hospital 2020-2023
2020 2021 2022 2023 enrolled in employer plans. This utilization pattern naturally intensifies the financial imbalance hospitals must navigate. Providers face an additional challenge as Medicare, Medicaid and many employer-sponsored health plans are shifting their payment models to emphasize quality and population health. This shift creates complexity in West Virginia, where residents face significant health challenges rooted in socioeconomic factors and limited access to preventive resources, among other issues.
Understanding these realities helps explain the severity of the health challenges the state continues to face. West Virginia struggles with some of the nation’ s most pressing health concerns. The Centers for Disease Control and Prevention data shows the state has the highest obesity rates nationally, while the American Lung Association reports the country’ s highest adult tobacco use at 21 %. Diabetes and opioid use disorder also affect West Virginians at disproportionately high rates. These conditions reflect broader systemic issues, including poverty, food deserts, educational barriers and limited wellness infrastructure. Improving these measures will require continued collaboration across the state.
As reimbursement becomes increasingly linked to health outcomes, West Virginia hospitals face heightened financial vulnerability for conditions largely shaped by factors beyond clinical care. While hospitals provide essential treatment and education, lasting improvements require addressing the underlying social determinants of health.
In addition to these insurance payment challenges and population health concerns, hospitals are confronted with ongoing workforce shortages, supply chain instability, rising tariffs and policy decisions that frequently fail to account for on-the-ground realities. Hospitals serve as major economic drivers, providing skilled jobs that anchor local economies. These positions require extensive education and training and cannot
$ 1.12
BILLION
Benefit to West Virginia Communities
$ 655M
Medicare & Medicaid Shortfalls
$ 186M
Provider Taxes
$ 182M
Uncompensated Care
$ 92M
Community Programs & Education
34 WEST VIRGINIA EXECUTIVE