One-fifth of integrated health systems reported monthly revenue drops exceeding 50%, according to an AMGA survey.
More than 40% of health systems estimate it will take at least a year for revenues to return to the levels reached prior to the coronavirus disease 2019 (COVID-19) outbreak.
According to an American Medical Group Association (AMGA) survey released Tuesday, one-fifth of integrated health systems reported monthly revenue drops exceeding 50%.
Similarly, almost 40% of medical groups have experienced monthly revenue losses of 50% and more than 35% expect the recovery process to take at least a year.
Both health systems and medical groups have suffered through significant financial challenges related to the pandemic, which caused the widespread cancellation of elective surgeries, typically a reliable revenue generator for provider organizations.
Despite the prospects of a long-term recovery, nearly a quarter of health systems and almost 30% of medical groups responded that it is unknown if revenues will return to normal.
As hospitals and medical groups have begun to reopen and bring services back online, AMGA released a letter pushing leaders on Capitol Hill to "provide more financial assistance to our nation’s healthcare providers."
"Health systems and medical groups are operating under a cloud of financial uncertainty that threatens their ability to continue to deliver the best care to their communities," Jerry Penso, M.D., M.B.A., CEO of AMGA, said in a statement. "We continue to urge Congress to provide additional funding to stabilize the front lines of the COVID-19 crisis."
Forward looking, nearly all hospitals and medical groups expect to see a rise in expenses for personal protective equipment and costs for telehealth infrastructure.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.