As COVID-19 cases began to climb in Florida, the Florida Hospital Association (FHA) commissioned Manatt to study the impact of COVID-19 on Florida hospitals’ financial position. Manatt estimated the gap between Florida hospitals’ financial losses associated with the COVID-19 pandemic and federal relief received to date. Our analysis of COVID-19’s impact on Florida’s hospitals estimates $3.8 billion in financial losses through the end of June, after accounting for relief funding received or expected to be received. Projected losses through August are $7.4 billion.
Financial losses include lost revenue due to delayed or cancelled outpatient, emergency department and elective surgeries, and increased operational costs and community investments related to the pandemic (e.g., personal protective equipment, surge planning, community testing sites, etc.). Losses were estimated using four months of survey data from Florida hospitals collected in the March–June 2020 timeframe. Two additional months of financial impact were projected using the survey data, as well as CDC hospitalization projections and hot spot case trends in the state. While Florida hospitals have received some federal relief funding, it is not enough to close the financial gap and not necessarily correlated to the needs and costs across regions.
At the time of the analysis, some regions in Florida were facing surges in COVID-19 cases, especially in the southern part of the state. While cases have trended downward in the recent month, utilization of routine healthcare services and elective procedures have not rebounded to pre-COVID-19 levels. From vaccines to cancer screenings, many people unfortunately continue to delay needed care. This negatively impacts the health of individuals and communities and continues to put financial strain on already vulnerable hospitals.
FHA and Manatt will continue to gather data and update our analysis of the pandemic’s financial impact on Florida’s hospitals.
Click here to view the new infographic detailing our findings and methodology.
FHA’s news release on the topic can be found here.
The authors would like to thank Elena Gambon for her contributions to the project.