Two-thirds of integrated health systems said initial funds from the federal aid bill will replace less than one week of revenue lost due to the COVID-19 pandemic, according to a survey from healthcare trade association AMGA.
Under the Coronavirus Aid, Relief and Economic Security Act, healthcare providers received $100 billion in aid, but AMGA predicts it could take as much as $318 billion to replace half of the revenues hospitals and physicians may lose over four months. The cancellation of elective surgeries and procedures is the main contributor to the lost revenue.
In its April 15-19 survey of 71 integrated health systems, AMGA found 40 percent of respondents have seen their revenue decline by more than half. Nearly all reported declines of 25 percent of more. Half (55 percent) reported having less than six months cash on hand, while 84 percent said they furloughed employees.
"Health systems are using every possible tactic to remain viable: furloughing employees, cutting salaries, exhausting reserves built up over decades, and accessing commercial loans," AMGA President and CEO Jerry Penso, MD, said in a press release. "Despite these measures, some groups and systems clearly are at risk to close."
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