COVID-19FinancialHospitals

Growing Costs And Shrinking Revenues Squeeze Hospitals As They Brace For Coronavirus

April 6, 2020 / PATTI NEIGHMOND

As many cities and regions of the country brace for a surge of coronavirus patients over the next few weeks, hospitals are scrambling to get ready. The increase in costs to convert beds, buy equipment and increase staffing time in order to care for critically ill COVID-19 patients is adding up at a time when revenues are down.

And the resources they have to turn to may vary, depending on the demographics of the patients they serve.

“We are very concerned,” says Dr. Anish Mahajan, chief medical officer of Harbor-UCLA Medical Center in Los Angeles. “We are doing everything we can to prepare.”

Harbor-UCLA is a public hospital, and the majority of its patients are low-income: about 65% are on Medicaid, 15% are on Medicare, only 10% have private insurance and the rest are uninsured, including many undocumented immigrants.

Mahajan says the hospital plans to triple the number of ICU beds available to treat critically ill patients. It normally has 450 beds including 44 ICU beds.

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Chris J. Stewart

Chris currently serves as President and CEO of Surgio Health. Chris has close to 20 years of healthcare management experience, with an infinity to improve healthcare delivery through the development and implementation of innovative solutions that result in improved efficiencies, reduction of unnecessary financial & clinical variation, and help achieve better patient outcomes. Previously, Chris was assistant vice president and business unit leader for HPG/HCA. He has presented at numerous healthcare forums on topics that include disruptive innovation, physician engagement, shifting reimbursement models, cost per clinical episode and the future of supply chain delivery.

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