You would think with Covid driving so many people to the emergency rooms, hospitals would be in great financial shape. Yet in 2022 hospitals experienced the worst financial performance in memory. Jeff Goldsmith writes:
Hospitals were, effectively, partially nationalized during 2020 by government mandated or voluntary suspensions of elective care to accommodate COVID patients. In partial compensation for the resulting losses, hospitals received massive federal assistance from the CARES Act. The disruption in normal hospital operations was severe enough that CARES funding accounted for a shocking 43% of hospital operating cash flow during 2020, according to Moody’s Investor Service As the pandemic continued in 2021 and 2022, and federal aid dried up or needed to be repaid, hospitals experienced widening operating losses.
The entire piece is worth reading.
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Here is the actual article, as the link above does not get you there….