Vast Upheaval to an Already Fragile Ecosystem
In less than 12 weeks, COVID-19 has disrupted life, perhaps more than any event in our generation. The nation’s response is remarkable for its teamwork, compassion and commitment, especially the health care community, which despite dire shortages of resources has unified to deliver its critical services to meet unprecedented demand. The U.S. Congress has passed several legislative actions to support individuals, small businesses and health care organizations.
Unfortunately, hospital management teams may have a false sense of comfort by the increased patient census resulting from COVID-19, and the balance sheet boost from stimulus funding, including Medicare advances. However, with the increased costs of temporary staff, overtime and supplemental pay, additional personal protective equipment, and many other related costs either becoming due or now past due, the current levels of stimulus funding will not indefinitely cover the lost income and fixed costs of operations. Many hospitals, especially community and rural hospitals, have cut their elective procedures and bought supplies only to have empty beds and higher costs. Major hospital systems across the country, such as Detroit Medical Center, UK Healthcare (Lexington, Ky.) and Dallas-based Steward Health, have implemented cost-cutting measures that include furloughs,
salary cuts and even hospital closures — all actions indicative of the severe and abrupt impact of the pandemic, regardless of geography.
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