COVID may cause hospitals’ bottom lines to bottom out—again
Leaders of hospitals and health systems should expect declines in patient volumes throughout the fall and winter.
In some areas the resulting business downturns may rival the low points of March and April, when the pandemic pummeled the healthcare economy.
So warns Kaufman Hall, which has issued a report showing provider institutions operating at a negative margin, –1.6%, in October before CARES Act funding is figured in.
Reviewing October data from around 900 hospitals across the country, the management consultancy also found:
- Adjusted discharges fell 11.2% year to date, 9.3% year over year and 5.5% below budget.
- Adjusted patient days decreased 7.7% YTD and 2.9% YOY, but were up 1.4% above budget.
- Operating room minutes fell 11.7% YTD and 5.6% YOY.
Hardest hit of all were emergency departments, which saw volume dips of 16% both YTD and YOY in October.
“The coming months will be critical for our nation’s hospitals, with the virus expected to continue its rapid spread as families gather for the holidays and activities move increasingly indoors with the onset of colder weather across much of the country,” the report authors comment.
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Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.