The nation’s hospitals are seeing a horrific revenue loss while prepping for the Wuhan Coronavirus outbreak. The medical models used to scare hospitals into thinking they would be overwhelmed has taken a financial toll.
Regional One Health, the safety-net hospital for the region, last week cut pay 10% for all salaried workers, including executives and doctors and nurses caring for COVID-19 patients, as it tries to navigate the crisis without furloughing staff.
Regional One, like other hospitals in the nation, has seen significant declines in patient numbers and revenue due to the ban on elective surgeries and the general anxiety people feel about being in the hospital now.
“The average hospital in this state has seen a 60% reduction or more in revenue. It’s unprecedented. It’s catastrophic.”
Friday, the Tennessee Hospital Association released an analysis of the revenue picture, noting that the state’s hospitals were losing $1 billion every 30 days without elective surgeries, as well as a tenfold rise at least in the cost of personal protective equipment (PPE). That’s in an industry that typically generates an average of $1.7 billion in monthly revenue.
Source: Daily Memphian