July 22, 2020

New AHA analysis examines effect of COVID-19 on hospital margins

By: Judy Mathias

Editor's Note

A new analysis prepared for the American Hospital Association (AHA) by Kaufman, Hall & Associates LLC examines COVID-19’s financial effects on hospitals and healthcare systems.

The analysis, released July 21, finds that without further government support, hospital margins in the second half of 2020 could fall to -7%, with half of all hospitals operating in the red.

Sponsored Message

The analysis also found that without funding from the Coronavirus Aid, Relief and Economic Security Act, hospital margins would have been -15% in the second quarter of 2020. Even with these funds, margins are expected to fall to -3% in the second quarter.

In a scenario that assumes periodic COVID-19 surges, margins could fall to -11%.

As the analysis shows, this pandemic is the greatest financial threat in history for hospitals and healthcare systems and is a serious threat to the future viability of many American hospitals, the report says.


Sign Up For OR a.m.
Sign up for the free OR a.m. eLetter to get news like this in your inbox every morning!

OR Manager Jobs
Live chat by BoldChat