Rick Pollack
President and CEO, American Hospital Association
Washington, DC

COVID-19 has created the greatest financial crisis in history for hospitals and health systems as revenues continue to sink, expenses continue to soar, and the number of uninsured continue to grow. Overall, COVID-19 will claim responsibility for an utterly unsustainable $202.6 billion in loses just through June.

As the pandemic threatens to puncture society’s ultimate safety net, many hospitals and health systems must rely on reserves to maintain their stability. Many of these organizations have losses as high as $350 million a month. Federal funding distributed thus far fails to make up for the shortfalls, while government programs – which comprise significant hospital volume – traditionally pay less than the cost of providing patient care services.

In addition to the fact that these funds have been depleted because of negative investment returns brought on by the current economic climate, the article also omits critical information regarding the rigid restrictions these funds often carry. Along with the role of reserves in powering the research behind cutting-edge technologies that improve care, reserves must also be maintained at certain levels to secure solid bond ratings and avoid defaults.

This unprecedented crisis continues to underscore that America’s hospitals are the only place in the health care system where the doors are always open. As we continue to fight the pandemic and as we prepare for a potential next wave, the resiliency of America’s hospitals is the best defense for the health of our nation.

Related News Articles

Headline
The Food and Drug Administration has identified a Class I recall for Mo-Vis BVBA R-net Joysticks due to a firmware error that causes the wheelchair to ignore…
Headline
The AHA Sept. 9 announced Eric Fish, M.D., president and CEO of Schneck Medical Center in Seymour, Ind., has been elected to fill a vacancy on its Board of…
Headline
The Centers for Disease Control and Prevention is predicting a similar combined number of peak hospitalizations from COVID-19, the flu and respiratory…
Headline
The Department of Health and Human Services announced Aug. 27 in a post on X that Susan Monarez was no longer director of the Centers for Disease Control and…
Headline
The Occupational Safety and Health Administration today announced a 60-day extension of the comment period on its proposed rule to remove the remaining…
Perspective
Public
The job description for the ideal health care leader in coming years might read something like this:Wanted: Bold, compassionate innovator who unites clinical…