Even the largest health system in the country is not immune to the financial instability caused by the Covid-19 pandemic. According to a new report.
From the fourth quarter of 2019 to the second quarter of 2021, the net patient income of the 25 largest non-profit health systems fell by 21%. From 2019 to 2020, patient net income fell by 3% year-on-year. At the end of last year, the Coronavirus Aid, Relief and Economic Security Act helped patients recover their income.
The report is published by the healthcare industry group of consulting firm Alvarez & Marsal and includes data from the country’s 25 largest non-profit health systems, that is, the health system with the most hospitals. The authors of the report analyzed the most common indicators in the public financial statements of more than 1,000 hospitals (about one-third of all non-profit hospitals in the country).
With the decline in patient net income, operating expenses have steadily increased. From calendar year 2019 to 2020, total annual operating expenses have increased by 5%. With the exception of the three health systems, the operating expenses of these organizations have increased by 2% to 10%, regardless of size.
From 2019 to 2020, operating income fell by 11%-probably due to the negative major profit margins in the first and second quarters of last year.
This data includes relief funds received through the CARES Act. The 25 health systems analyzed in this report received an estimated US$6 billion to US$8 billion in federal assistance.
The poor financial performance of the health system is the result of an overall decline in operating indicators.
From the fourth quarter of 2019 to the second quarter of this year, emissions fell by 18%. During the same period, the number of surgeries dropped by 36%, and the number of emergency room visits dropped by 31%. At the same time, the average length of stay increased by 7%.
From 2019 to 2020, the number of people discharged from hospital has dropped by 9%, and the number of days in hospital has increased by 6%, which indicates that the conditions of patients admitted during this period are more complicated or more severe.
“As the health system continues to recover, what is even more telling is the impact of the decline in the volume of surgery and emergency surgery, which dropped by 11% and 17% year-on-year, especially the actions we have seen in the health sector. The manager and co-author of the report, John McLean, said: In the press release.
Photo: Jaiz Anuar, Getty Images
