Amid the growing COVID-19 pandemic, many hospitals and physician practices have been forced to lay off non-clinical staff. According to a survey conducted by MGMA, 48% of physician practices had furloughed staff and 22% had laid off some staff. The list of hospitals reporting furloughs/layoffs has grown to over 100, reports Becker's Healthcare.
This is due to large losses in revenue as facilities continue to cancel elective procedures. Healthcare organizations are being advised to cancel all elective procedures to save their resources—clinicians, PPE, medication, beds—for COVID-19 patients.
The result is catastrophic to healthcare facilities’ bottom line. In Montana, Kalispell Regional Healthcare is estimating a revenue loss of $16 million per month while it suspends elective procedures and, as a result, furloughed 600 employees. The organization also announced that executives, physicians, and executive directors would be taking salary reductions.
The MGMA survey found that 97% of physician practices have experienced a negative financial impact related to COVD-19. Practices reported an average revenue decrease of 55% and patient volume decrease of 60%.