Independent Report Finds CA Hospital Losses From COVID-19 Could Lead to Long-Term Changes, Service Reductions
Immediate economic relief is needed for financially challenged hospitals
SACRAMENTO (June 5, 2020) – A new report from Kaufman Hall, a nationally renowned independent consulting firm with extensive health care finance expertise, has found that the COVID-19 pandemic is likely to lead to long-term changes to financial stability and care delivery in California hospitals, many of which were already operating with negative margins. This report, which was commissioned by the California Hospital Association, comes on the heels of one released on Wednesday by the independent California Health Care Foundation, which also foretells long-term economic damage on California hospitals.
“Since the outset of the pandemic, California hospitals have rightfully focused their efforts on caring for COVID-19 patients, protecting their workers, and preserving the safety of their communities,” said Ken Kaufman, chair of Kaufman Hall. “Our research shows that these vital efforts have come at an extremely high cost. When coupled with an already challenging financial environment prior to COVID-19, California hospitals are now facing a very difficult path forward.”