AMERICAN HOSPITAL ASSOCIATION ISSUES REPORT ESTIMATING $202.6 BILLION IN LOSSES TO HOSPITALS THROUGH JUNE 2020 AS A RESULT OF THE IMPACT OF COVID-19

The financial impact of the COVID-19 crisis has been devastating for America’s healthcare providers as a result of the virtual cessation of elective procedures and the costs of treating COVID-19 patients. The American Hospital Association has issued a report quantifying the impact of COVID-19 on just one sector of providers, America’s hospitals and healthcare systems. The AHA Report estimated a total financial impact of $202.6 in losses for hospitals and healthcare systems from March 1, 2020 through June 30, 2020. This estimate included the impact of cancelled and foregone elective services and procedures, the costs of treating COVID-19 patients, and the additional costs associated with purchasing needed personal protective equipment and providing other support to hospital workers.  

In a press release announcing publication of the Report, AHA President and CEO Rick Pollack stated:

America’s hospitals and health systems have stepped up in heroic and unprecedented ways to meet the challenges caused by COVID-19. However, the fight against this virus has created the greatest financial crisis in history for hospitals and health systems. While we appreciate the support and resources from Congress and the Administration, many hospitals are still on the brink.

Conversely, health insurance companies have continued to report robust profits during the COVID-19 crisis.  For example, UnitedHealth Group reported a 6.8% growth in revenues and $3.4 billion in profits for the first quarter of 2020.  Similarly, CVS Health, which purchased Aetna last year, reported a 14.4% increase in profits of $4.1 billion for the first quarter of 2020.

The AHA Report is linked here.