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AHA Estimates Hospital COVID-19 Financial Losses at $202.6 Billion

Hospitals and health systems nationwide are set to lose $202.6 billion between March 1 and June 30 as a result of the COVID-19 pandemic, according to a report by the American Hospital Association (AHA).

Hospital COVID-19 financial losses as estimated in the report include the impact of canceled and foregone services due to COVID-19 on hospital revenue, the costs of COVID-19 hospitalizations, the additional costs associated with purchasing needed personal protective equipment, and the costs of additional support some hospitals are providing to their workers, such as child care, housing and transportation for front line caregivers and other employees.

The estimates do not take into account additional expenditures, such as the acquisition of drugs, certain medical supplies, equipment or increased labor costs that hospitals must incur to meet the demand for treating COVID-19.

“Hospitals here in Northeast Ohio and across the country have gone to extraordinary lengths to respond to the COVID-19 pandemic,” said Brian Lane, president and CEO of The Center for Health Affairs. “From reconfiguring their physical facilities and reassigning and training their staff to serve in new ways, to forgoing revenue from non-essential procedures in order to conserve vital PPE supplies, they have worked tirelessly to care for their patients and serve their communities throughout this challenging time.”

The AHA report demonstrates the critical need for the relief funding allocated in recent federal legislation.

“While we appreciate the support and resources from Congress and the Administration, many hospitals are still on the brink. We need further support and resources to ensure that we can continue to deliver the critical care that our patients and communities are depending on while also ensuring that we are prepared for the continuing challenges we face from this pandemic as well as other potential emergencies,” said Rick Pollack, AHA president and CEO.

For more on the impact of the COVID-19 pandemic on Northeast Ohio hospitals, contact us.

TWEETABLE: The American Hospital Association estimates hospital COVID-19 financial losses at $202.6 billion from March 1 through June 30.