What You Should Know:
– Nearly three-quarters of hospital leaders are either moderately (52%) or extremely (22%) concerned about the financial viability of their organizations without an effective treatment or vaccine for COVID-19, according to a new report from Kaufman Hall entitled, “2020 State of Healthcare Performance Improvement Report: The Impact of COVID-19”
– One-third of respondents saw operating margin declines in excess of 100% in the second quarter of 2020 compared with the same period of 2019.
– This year’s report findings were based on 64 responses to a survey that Kaufman Hall fielded in August 2020.
Nearly three-quarters of hospital leaders are either moderately (52%) or extremely (22%) concerned about the financial viability of their organizations without an effective treatment or vaccine for COVID-19, according to a new report from Kaufman Hall. One-third of respondents (33%) saw operating margin declines in excess of 100% in the second quarter of 2020 compared with the same period of 2019.
“2020 State of Healthcare Performance Improvement Report: The Impact of COVID-19” is Kaufman Hall’s fourth annual survey of hospitals and health systems on their performance improvement and cost transformation efforts.
“The challenges brought on by the COVID-19 pandemic have affected nearly every aspect of hospital financial and clinical operations,” said Lance Robinson, managing director, Kaufman Hall. “Organizations have responded to the challenge by adjusting their operations and strengthening important community relationships.”
Key findings from this year’s report include the following:
Financial viability. Approximately three fourths of survey respondents are either extremely (22%) or moderately (52%) concerned about the financial viability of their organization in the absence of an effective vaccine or treatment.
Operating margins. One-third of our respondents saw year-over-year operating margin declines in excess of 100% from Q2 2019 to Q2 2020.
Volumes. Volumes in most service areas are recovering slowly. In only one area—oncology—have a majority of our respondents seen volumes return to more than 90% of pre-pandemic levels.
Expenses. A majority of survey respondents have seen their greatest percentage expense increase in the costs of supplying personal protective equipment. Nursing staff labor is in second place, cited by 34% of respondents as their most significant area of expense increase.
Healthcare workforce. Three-fourths of survey respondents have increased monitoring and resources to address staff burnout and mental health concerns.
Telehealth. More than half of our respondents have seen the number of telehealth visits at their organization increase by more than 100% since the pandemic began. Payment disparities between telehealth and in-person visits are seen as the greatest obstacle to more widespread adoption of telehealth.
Competition. Approximately one-third of survey respondents believe the pandemic has affected competitive dynamics in their market by making consumers more likely to seek care at retail-based clinics.
To download a copy of the report, click on the download now button below
