Accounting & Financial Management
Even upticks in COVID-19 patients haven't made up for the revenue losses, since reimbursement for those services is comparatively slim.
Hospital margins could sink to a median as low as -7% by year's end, and half of all hospitals may be in the red.
Executives spoke about navigating through the pandemic during the Healthcare Financial Management Association Digital Annual Conference.
Demand for physicians, as gauged by the number of new search engagements, has declined by over 30% since March 21.
Healthcare and social assistance has so far received $67.4 billion of the $521 billion distributed by the program.
The U.S. Department of Health and Human Services also announced it would give $450 million to the biotech company Regeneron to manufacture and supply the company's antibody treatment.
The health system said federal funding doesn't cover operating losses incurred during the public health crisis.
The system expects it will realize the $500 million reduction in debt as anticipated, though a final order is still needed.
The CARES Act and the resumption of elective procedures have helped, but they're still baby steps on the road to recovery.
The coronavirus is mainly affecting the credit outlook for the rest of the year and beyond as hospitals adapt to new financial realities.