Health Economics

This is the discussion board assignment:

COVID-19’s Impact on Hospitals’ Financial Health

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Due to COVID-19, hospitals faced dire financial challenges: declining revenues, increased cost, and high uncompensated care caused in large part by employment loss, to name a few.

In this discussion, in no less than 200 words, please identify and articulate examples in these situations with data to illustrate your point of view. In addition, please reply in no less than 100 words to one of your classmates’ posting. Both postings should present quality, thoughtfulness, and unique perspectives. Graphs and other visual illustrations are highly encouraged.

Blow is my classmate’s (VS) posting, and you should reply in 100 words.

The pandemic has been difficult on almost every industry but one of the hardest-hit is healthcare. Financially, organizations have to keep their losses at a minimum, bear the expenses to conduct operations, and have profit at the end of each period. While I was researching Covid-19’s impact on Hospital’s Financial Health, I found an article called Hospitals & Health Systems Face Unprecedented Financial Pressures due to Covid, by the American Hospital Association. The article highlighted the various implications of Covid. On the finance side, “The AHA estimates that $202.6 billion in losses for America’s hospitals and health system in four months. The average loss per month is $50.7 billion.” From this article, I saw how much money is made by hospitals and how profitable most of the industry was before the pandemic. But some hospitals in low socioeconomic communities were suffering before COVID.  During COVID, those hospitals are barely holding on. Even though the government has provided relief through the CARES Act, some health systems will not recover post-pandemic. In my opinion, the hardest-hit communities will see hospitals close their doors, and this creates many questions such as how will those communities access care, and who will help cover the loss for the hospitals that stay open after the pandemic. From a financial aspect, I also worry about how the money provided by the government as well as the PPE is distributed. The most important aspect of helping hospitals is to provide equitable solutions to ensure all communities can stay above water when dealing with the pandemic. “The losses in revenue have also been met with a sharp increase in costs for hospitals since the beginning of the pandemic. The Kaiser Family Foundation estimates the cost of treating a patient with Covid-19 could be more than $20,000 and over $80,000 for patients that need a ventilator.”  Although other industries may survive price increases, I do not believe health is one of them. Healthcare in America is already extremely expensive, and many families face medical bankruptcy. “The estimated average cost of treating patients with commercial coverage is $38,221.” Most families cannot financially afford care. I think is it important to make sure that we are financially reviving hospitals but not hurting everyday Americans in the process. For more information on Health Economics check on this:

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