Respondents stated that the greatest percentage increases in expense costs were related to personal protective equipment and nurse staffing labor.
Almost three-quarters of hospital executives said they are "extremely" or "moderately" concerned about the financial viability of their respective organizations in the absence of a vaccine for COVID-19, according to a Kaufman Hall survey released Monday morning.
One-third of respondents experienced year-over-year operating margin declines exceeding 100% during Q2 2020, though volumes in most service areas have begun to recover slowly. The only service area that a majority of respondents said had recovered to more than 90% of pre-pandemic levels was oncology.
Additionally, respondents stated that the greatest percentage increases in expense costs were related to personal protective equipment and nurse staffing labor.
Related: Healthcare Financial Trends to Follow in the COVID-19 Era
"The challenges brought on by the COVID-19 pandemic have affected nearly every aspect of hospital financial and clinical operations," Lance Robinson, managing director at Kaufman Hall, said in a statement. "Organizations have responded to the challenge by adjusting their operations and strengthening important community relationships."
Hospital executives also stated that there is a focus on caring for clinical staff, as three-quarters of respondents said their organization has increased "monitoring and resources to mitigate staff burnout."
Most organizations have experienced an increase in telehealth usage during the pandemic, though lingering payment disparities between an in-person visit and a virtual visit remains the greatest obstacle to widespread adoption of telehealth services, according to respondents.
Related: Following the COVID-19 Surge: 5 Hospital Impacts
Hospitals also face challenges related to changing consumer behavior, as one-third of respondents said consumers are more likely to seek care at retail-based clinics.
To that end, providers are eyeing implementation of "digital and ambulatory strategies" to maintain their market share.
Related: 9 Hospital CFOs Navigating the COVID-19 Pandemic
The survey was released over a week after Kaufman Hall's latest analysis on M&A activity among provider organizations.
Related: Hospital M&A Activity Still Down But Execs Expect Uptick in 2021
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.