Hospitals could lose $122B in revenue
U.S. hospitals face up to $122 billion in lost revenue this year as the pandemic continues its rampage.
Even a best-case scenario would cost hospitals $53 billion, a new Kaufman, Hall & Associates report for the American Hospital Association says.
How quickly hospitals recover depends on the vaccine rollout, the spread of more infectious strains and how potential patients behave — both in terms of how cautious they remain and how willing they are to return for not only profitable elective procedures but even for emergencies.
Declining revenues slammed hospitals as safety and treatment costs have soared, with a 14 percent rise in labor and 17 percent for drugs last year, the report said. Even before the pandemic, hospitals operated on thin margins, with a median of 2.5 percent in 2019, the report shows.
U.S. community hospital revenues totaled $4.1 trillion in 2019, the most recent year available, according to the AHA.
Hospitals with fewer privately insured patients are most affected because Medicaid and Medicare payments are lower.