The Ohio Hospital Association estimates a $1.2 billion negative financial impact to Ohio hospitals every month because of the COVID-19 pandemic (Source: “Ohio hospitals are prepping for big financial losses in pandemic,” Modern Healthcare, April 9, 2020).
And that number is expected to increase. For perspective, the total revenue for Ohio hospitals averages about $48 billion annually
In addition to the cost implications of shifting away from nonessential surgeries and procedures, hospitals are grappling with increasing prices in the supply chain for the equipment they desperately need to treat COVID-19 patients. Plus, hospitals, like all businesses, are seeing effects from the volatility of the financial markets.
The $2 trillion coronavirus aid package known as the CARES Act, passed by Congress and signed by President Donald Trump in March, allows hospitals to receive an advance on expected future Medicare reimbursement and allocates $100 billion to reimburse eligible healthcare providers for related expenses or lost revenues directly attributable to COVID-19.