U.S. hospitals are predicted to lose more than $200 billion in revenue by June 30 amid the pandemic, according to a report by the American Hospital Association.
U.S. hospitals are predicted to lose more than $200 billion in revenue by June 30, according to a report by the American Hospital Association. The industry group estimates the total revenue hit from the pandemic at about $50 billion a month among health-care facilities since March.“The worst is yet to come,” said Michael Topchik, executive director of The Chartis Center for Rural Health, a Chicago-based management-consulting firm.
“America’s hospitals and health systems have stepped up in heroic and unprecedented ways to meet the challenges caused by Covid-19,” he said. “However, the fight against this virus has created the greatest financial crisis in history for hospitals and health systems.” Facilities in the country’s heartland are now dealing with some of the biggest outbreaks of the virus, and they’re hurting financially as well.
“The $64,000 question is whether hospitals and their allies will convince the federal government to provide another injection of financial support to hospitals adversely affected by the pandemic,” said Jim Unland, president of Chicago-based Health Capital Group. “This is a nightmare.”Surges of critically ill Covid-19 patients didn’t only overwhelm hospital emergency rooms, strain staff and deplete personal protective equipment.
The result? Several New York medical centers are scrambling to make ends meet. The state’s teaching hospitals lost between $350 million and $450 million a month as they worked to flatten New York’s Covid-19 curve, pushing many to the brink of ruin.“The decision to eliminate elective surgeries and outpatient visits was the right decision in terms of protecting the safety of our patients and staff,” said Mayo’s chief administrative officer, Jeff Bolton.
Unprepared medical systems Litvak said some health-care facilities might try to restart elective procedures before potentially having to scrap them again if additional outbreaks occur.
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