The report says that the increased cost of COVID-19 hospitalizations for hospitals, losses from services canceled because of the pandemic, as well as costs for purchasing personal protective equipment and additional support for their employees, are hospitals' main financial burdens.
Hospitals were already under strain before the coronavirus hit
According to the AHA report, the ongoing coronavirus pandemic has created a cash crunch for many hospitals. These facilities are expected to lose more than $200 million between March 1 and June 30 – an average of $50.7 billion per month. Non-federal hospitals are expected to lose approximately $161.4 billion in revenue during those four months due to canceled services, such as non-elective surgeries and outpatient treatment.
The report also pointed out that while the federal government moved quickly to provide financial assistance to hospitals during the pandemic, many of these facilities already had existing financial pressures before 2020.
"Critics have argued that hospitals were well funded prior to the COVID-19 public health emergency, however, the reality is that many hospitals were already facing financial pressures," stated the report.
In addition, the report also pointed out that only a portion of the relief funds was going to hospitals as other providers were also getting them.