U.S. Hospitals Suffering Financial Damage as a Result of COVID-19 Pandemic
CHICAGO, April 21, 2020 /PRNewswire/ — The nation’s hospitals are suffering significant financial damage as a result of the COVID-19 pandemic response. Kaufman Hall’s data from more than 800 U.S. hospitals show that volume and revenue declines, along with flat to rising expenses, resulted in a dramatic fall in margin within a matter of weeks, plunging not-for-profit hospitals, which historically operate on thin margins, deep into the red.
“The data paints a dire picture for U.S. hospitals,” said Jim Blake, managing director, Kaufman Hall. “While the nation is relying heavily on our healthcare system, the COVID-19 response actions are having a devastating financial impact on these organizations. These initial numbers only reflect the first two weeks of the COVID-19 response and likely indicate more negative results in the future.”
Kaufman Hall’s latest edition of the National Hospital Flash Report, based on March data from more than 800 U.S. hospitals, shares the dramatic impact.
- Margins
- Operating margins dropped 150% year-over-year
- Operating EBITDA margins fell more than 100% year-over-year
- Operating margins fell 170% below budget for the month
- Hospital Volumes
- Operating Room minutes down 20% year-over-year
- Emergency Department visits dropped 15% year-over-year
- Median hospital occupancy rate was 53% for the month
- Hospital Expenses
- Labor expenses were up 3% year-over-year
- Non-labor expenses were up 1% year-over-year
- Revenue
- Budgeted inpatient revenue was down 13% in March
- Budgeted outpatient revenue was down 17% in March
- Bad debt and charity care rose 13% year-over-year
For more statistics and details, please see the National Hospital Flash Report.
Kaufman Hall experts are available for comment, please contact Philip Anast at panast@acmarketingpr.com.
About Kaufman Hall
Kaufman Hall provides a unique combination of software, management consulting and data solutions to help society’s foundational institutions realize sustained success amid changing market conditions. Since 1985, Kaufman Hall has been a trusted advisor to boards and executive management teams, helping them incorporate proven methods, rigorous analytics and industry-leading solutions into their strategic planning and financial management processes, with a focus on achieving their most challenging goals.
Kaufman Hall services use a rigorous, disciplined, and structured approach that is based on the principles of corporate finance. The breadth and integration of Kaufman Hall advisory services are unparalleled, encompassing strategy; financial and capital planning; cost transformation; treasury and capital markets management; and mergers, acquisitions, partnerships, and joint ventures.
Kaufman Hall software includes the Axiom Software Suite, providing sophisticated, flexible performance management solutions that empower finance professionals to analyze results, model the future, and optimize organizational decision making. Solutions for long-range planning, budgeting and forecasting, performance reporting, capital planning, and cost accounting deliver decision support, reporting, and analytics within an integrated software platform. Kaufman Hall’s Clinical Analytics empower healthcare organizations with clinical benchmarks, data, and analytics to provide a higher quality of care for optimized performance and improved patient outcomes.
Press Contact:
Philip Anast
Amendola Communications (for Kaufman Hall)
Email: panast@acmarketingpr.com
Phone: 312-576-6990
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SOURCE Kaufman Hall
