California Hospital Affiliation | Apr 30, 2021
Barely greater than 100 days for the reason that number of COVID-19 cases peaked in California, hospitals throughout the state proceed to face important — and long-lasting — monetary challenges, in keeping with a brand new report by Kaufman Corridor, a nationally revered consulting agency with intensive well being care experience.
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The report quantifies how the pandemic broken the monetary well being of California’s greater than 400 hospitals in 2020, and forecasts continued fiscal impacts via 2021 and probably past.
In response to the report, ready by Kaufman Corridor on the request of the California Hospital Affiliation, California hospitals misplaced greater than $14 billion in 2020 as a result of pandemic. And, even after factoring in federal monetary assist supplied final yr via the CARES Act, California hospitals nonetheless misplaced greater than $eight billion that yr. The report additionally notes that the monetary harm brought on by the pandemic will proceed not less than via 2021. California hospitals are anticipated to lose a further $600 million to $2 billion this yr, relying on vaccination charges and the trail of the virus. Hospital working margins are anticipated to say no between 19% and 65% in 2021.
“These findings recommend broad and critical challenges for California’s hospitals and the communities they serve,” the report states. “Not solely might many hospitals wrestle to keep up pre-pandemic service ranges, a major quantity run the danger of defaulting on bond covenants, dropping their potential to operate as impartial entities and/or closing.”
“The COVID-19 pandemic has left a majority of hospitals all through the state financially damaged, unstable, and unsure of how they’ll proceed to offer — at a minimal — the identical stage of care and entry whereas additionally getting ready for any and all emergencies which will but come,” mentioned Carmela Coyle, President & CEO of the California Hospital Affiliation. “Even once you issue within the restricted federal aid funds which have come to California, these huge losses will pressure affected person take care of years to return.”
“The underside line,” Coyle added, “is that California hospitals are drowning, and now’s the time to assist them return to shore, not add extra weights round their ankles.”
— to stateofreform.com