Virus Money Insufficient to Make Up Lost Revenue, Hospitals Say

The country’s hospitals say they are losing more than $50 billion per month largely from canceled surgeries and want Congress to inject more public funds into the industry.

The American Hospital Association unveiled a report Tuesday that projects health-care facilities will lose $202.6 billion between March and June, more than the $175 billion that Congress has approved in relief for doctors and hospitals this year. They’re asking lawmakers to do more for the industry, including finding a new way to cover the uninsured.

“While we appreciate the support and resources from Congress and the Administration, many hospitals are still on the brink,” AHA President and CEO Rick Pollack said in a statement.

An exam bed sits in a room at a hospital in Princeton, Ill.

Photographer: Daniel Acker/Bloomberg

An AHA spokesman said the association hasn’t asked for a specific amount of additional funding for the industry. The AHA and other hospital groups have sought money specifically to cover the uninsured after the Trump administration said it would use some of the $175 billion given to providers to cover those without insurance coverage.

The report echoes what hospital systems themselves have been saying: Tenet Healthcare CEO Ron Rittenmeyer said his company got $375 million from the federal government, an amount he called “helpful but not sufficient” during an earnings call on Monday.

Canceled surgeries account for the bulk of lost revenue, according to the report. Hospitals stand to lose $161.4 billion from March to June as hospitals take on few elective surgeries, outpatient procedures and other services, the report said.

Several states, including Florida and Virginia, plan to relax restrictions on elective surgeries in May to aid hospitals. State hospital associations say the resumptions of the procedures are necessary.