New York hospitals expect $20B hit from COVID-19

The COVID-19 pandemic has taken a financial toll on New York hospitals, and federal grants haven’t offset the financial damage, according to a report from the Healthcare Association of New York State. 

The pandemic is expected to have a $20 billion to $25 billion fiscal impact on New York hospitals through April 2021, according to an analysis for HANYS by Kaufman, Hall and Associates. That total includes revenues losses and new expenses. 

“To put the fiscal impact in context, this equates to about 25-30 percent of our hospitals’ patient service revenue in a year — a devastating blow to any business but especially devastating to one on the front line of the COVID-19 response and one that must retain essential healthcare services for its community,” reads the HANYS report. 

New York hospitals have received approximately $9 billion in federal support through the Coronavirus Aid, Relief and Economic Security Act. The funds are “a drop in the bucket compared to the financial destruction COVID-19 has left in its wake,” reads the report. 

HANYS released the report as trade groups representing hospitals are pressing Congress for more relief aid. Democrat leaders and White House officials are in a standoff over the next COVID-19 relief bill, but both are calling for more funds for hospitals. Democrats proposed an additional $100 billion for the healthcare industry in legislation the House of Representatives passed in May, and Republicans included $25 billion for hospitals and physicians’ offices in their counterproposal.

More articles on healthcare finance:
Medicare payment rules for 2021: 11 notes for hospital execs
Steward, medical billing company accused of illegal ‘revenue enhancement’ scheme
CMS unveils new payment model for rural hospitals: 10 things to know


© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.