News: Ceasing of elective surgeries cost hospitals $22.3 billion in 2020
The total national revenue loss due to the pausing of elective surgeries because of COVID-19 is an estimated $22.3 billion in 2020, according to findings published in the Annals of Surgery.
Study authors abstracted elective surgical cases from 2016 to 2017 to forecast projected revenues that might have taken place in 2020.
The article notes that strategies to mitigate predicted financial losses will “vary with hospital-specific supply-demand equilibrium.”
The study concludes that “if patient demand is slow to return, hospitals should focus on marketing of services; if hospital capacity is constrained, efficient capacity expansion may be beneficial.”
Rural and non-teaching urban hospitals may face increased financial risk, which researchers warn may exacerbate care disparities.
Editor’s note: The Annals of Surgery article can be found here.