COVID-19 Financial Resiliency Resources
The financial impact of COVID-19
Prior to COVID-19, health systems were operating on generally thin margins, with full knowledge that leakage from their mid-revenue cycle was a significant root cause — driving less than full reimbursement for the care they provided.
Our data analysis over 60,000 COVID-19 cases shows that the increase in volume of COVID-19 cases will not sufficiently compensate for the significant reduction in the volume of elective procedures taking place.
REIMBURSEMENT IMPACT
Although we saw overall reimbursement rise as hospitals treated higher volumes of COVID patients, surgical reimbursement continues to be suppressed. This could be worrisome as hospitals exit the pandemic, as medical dollars are expected to go down as COVID admissions decrease. Unless surgical volumes appreciably recover, we expect overall reimbursement to sink once more.
MDC IMPACT
For facilities where COVID-19 admissions represented at least 5% of the total admission for that month, while most other MDCs experienced a decline in volume as expected, Respiratory and Infectious Disease admissions volumes were up about 90% and 70% respectively. Trauma Surgery volume was up about 20%. In addition, the average MDC surgical volume decreased by 41%.
Tools to build a long-term strategy
Both now and post COVID-19, finance leaders are exploring solutions that not only mitigate downward margin pressure short-term, but also create resiliency in the long-term. As hospitals navigate these challenges, many are realizing that business as usual will no longer be enough.
We’ve created this resource hub to help you get the most updated news, information, and advice as you navigate this difficult time. Check back often as we plan to update this page with new data and insights.