Nearly 50% of healthcare facilities across the country have seen their amount of bad debt and uncompensated care increase during the coronavirus pandemic, according to the results of a survey that were released last week. Nearly just as many facilities have seen an increase in the number of patients who are either self-pay or uninsured, another potential harbinger of problems for providers still trying to manage their operations during this crisis.
The survey was conducted by Kaufman Hall, a consulting firm, in August.
Along with the increase in the number of uninsured patients, there has been a corresponding drop in the number of patients with private health insurance, who typically bring in more revenue for hospitals and healthcare providers than patients with public insurance, such as Medicare or Medicaid.
“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, in a statement. “Organizations have responded to the challenge by adjusting their operations and strengthening important community relationships.”
Hospitals and healthcare facilities across the country have been grappling with the fallout of the COVID-19 pandemic for months, being forced to balance higher expenses with lower revenues and operating margins. The result has caused the healthcare industry to lose billions of dollars so far, with no real end in sight. Nearly 60% of the survey’s respondents have furloughed workers during the pandemic and 31% have permanently reduced the sizes of their workforces.
For companies in the credit and collection industry, that presents an opportunity to work with their healthcare provider clients to help them boost their revenues by collecting on unpaid debts. That money flows directly to the bottom line of a hospital’s financial statement and can help immeasurably during this crisis.
