A couple of days back I had a conversation with a broke about COVID 19 and the impact in the economy. During this conversation, the broker made a statement indicating that healthcare professionals were the only ones making money due to the pandemic. I could not let this stand and decided to share a little light on the subject.
Opposite of what everyone thinks, the financial impact of COVID 19 has been devastating for the healthcare organizations and professionals. I actually think that many healthcare businesses and professionals will not survive the pandemic and for others will be one to two years to recover. Regardless of my opinion I decided to do a quick search to gather data that could support my position and I was surprised at how quickly I was able to gather the same.
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Dollars |
Description |
Reference |
$67,774 |
Estimated primary care practices gross revenue loss per full time over the course of calendar year 2020 |
Primary Care Practice Finances in The United States Amid The COVID-19 Pandemic
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$15.1 billion |
Revenue losses caused by COVID-19 among primary care practices in the USA. |
Primary Care Practice Finances in The United States Amid The COVID-19 Pandemic
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|
$2 billion |
2021 Trinity Health expected losses due to the COVID-19 pandemic |
Trinity Health projects $2B revenue loss in 2021 due to COVID-19 as furloughs and layoffs extended |
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$323.1 billion |
Estimated hospital losses for 2020 due to COVID 19 |
AHA: Hospitals could lose $20B a month for rest of 2020 due to COVID-19 impact
https://www.aha.org/system/files/media/file/2020/06/aha-covid19-financial-impact-report.pdf |
As shown on the table above, Hospitals, Healthcare Organizations and Independent Physicians are expected to lose billions of dollars in 2020 alone. To add insult to injury, I have already seen the operational costs increase due to measures that have been added in response to COVID 19. In other words, COVID 19 results to the healthcare economy has been a paradigm where there is less money coming in and more money going out.
Granted, as with everything else, there are some people that will do well in spite of COVID 19, yet, let us recognize that the impact of COVID 19 has been severe.