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Excluding NYC and SF, Hospitals Losing $1.4B in Revenue Per Day Due to COVID-19 Pandemic

Analysis  |  By Jack O'Brien  
   May 01, 2020

Average patient volume at hospitals with more than 100 beds declined 56% from March to mid-April, according to a new Crowe LLP report.

Outside of New York City and San Francisco, hospitals across the country are losing approximately $1.4 billion in net revenue per day due to the ongoing coronavirus disease 2019 (COVID-19) outbreak, according to a Crowe LLP report released Friday morning.

The analysis estimated that the national net revenue at hospitals with more than 100 beds has declined $1.44 billion per day during the pandemic. 

Additionally, the average patient volume at these hospitals has declined 56% from the beginning of March to mid-April.

Related: Emerging From Pandemic: LCMC Health CEO Details How the New Orleans System Is Moving On

The report pointed to five service metrics that have suffered significant declines over the past two months.

Compared to the datasets from January 2020, inpatient admissions are down 30%, emergency room visits slid 40%, observation services fell 47%, outpatient ancillary services dropped 62%, and outpatient surgery volume collapsed 71%.

The report is the latest insight into the financial burden faced by hospitals and health systems as a result of the global pandemic.

"Hospitals and governments prepared for a surge in patient volume to treat those infected with the novel coronavirus," Brian Sanderson, managing principal of healthcare services at Crowe, said in a statement. "However, any possible surges that might have been expected due to COVID-19 patient volume appear to be dramatically offset by a significant decline in volume in all other areas."

Related: $75B Relief Bill Provides 'Much-Needed Lifeline' to For-Profit Hospitals

According to the report, several states have experienced patient volume declines at hospitals, even if a surge of COVID-19 activity has not yet occurred.

Florida's overall patient volume fell 47%, California has seen its patient volume drop 50%, Texas' patient volume is down 56%, and Illinois' patient volume has declined 59%.

The report indicated that hospitals would face financial challenges going forward, estimating that the average hospital will "need to run at 110% of previous capacity for six months straight" to recoup lost revenue.

Related: Despite Federal COVID-19 Stimulus, Many Hospitals Could Face Layoffs Within Two Month

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.

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