Practices report a 60% average decrease in patient volume and a 55% average decrease in revenue since the beginning of the public health emergency, an MGMA survey finds.
Ninety-seven percent of physician practices have experienced a negative financial impact from COVID-19, finds a new Medical Group Management Association (MGMA) survey.
The financial impact is both directly and indirectly related to the outbreak, the survey said.
Specifically, practices report a 60% average decrease in patient volume and a 55% average decrease in revenue since the beginning of the public health emergency.
In addition, many practices have started furloughing and laying off employees, and more plan to do so as the weeks and months of crisis drag on, respondents said.
Because of the revenue and volume declines, 48% of respondents have temporarily furloughed staff, and 22% have permanently laid off staff.
By May, those numbers are projected to increase to 60% for furloughs and 36% for layoffs, according to MGMA.
Medical practices and health systems arenโt the only entities facing layoffs and furloughs related to COVID-19.
Over 25% of CFOs anticipate layoffs as a result of the economic downturn, according to a PricewaterhouseCoopers survey.
Forty-one percent of CFOs stated that they expect furloughs, and 46% anticipate a productivity loss related to a lack of remote work capabilities.
More than 80% of surveyed CFOs expect company revenues and profits to decline this year as a result of the outbreak. Additionally, 75% of CFOs now view the COVID-19 outbreak's impact on operations and liquidity as the top concern for 2020.
Alexandra Wilson Pecci is an editor for HealthLeaders.
