Report examines COVID-19 impact on state healthcare system

Operating losses for Pennsylvania’s healthcare system are estimated to total between $4.4 billion and $4.86 billion for the April through June quarter and more than $10.2 billion for the entire year, according to a report commissioned by The Hospital and Healthsystem Association of Pennsylvania (HAP).

The losses are the result of the COVID-19 pandemic.

“The COVID-19 crisis is unfolding in real-time and this report offers only a preliminary glimpse into the short- and long-term implications of addressing a global pandemic,” HAP President and CEO Andy Carter said. “We must use this analysis to inform our immediate response, as well as our plans to ensure that hospitals remain open and able to treat patients after COVID-19 is contained. This includes continuous state and federal government resources to address current and looming fiscal challenges.”

In March, hospital operating margins declined by approximately $914 million compared to projections. Losses would have totaled $2.03 billion had patient activity restrictions and volume declines occurred during the entire month.

Losses are estimated to total $4.7 billion from July through December 2020.

If the state’s hospitals receive $3.13 billion in federal CARES Act funding, projected and estimated losses are expected to be more than $7 billion for 2020.