Health Systems Losing Money on Employed Physicians During COVID-19
Health systems are facing a mean subsidy, or loss, of $227K per employed physician, while hospitals continue to underperform due to COVID-19, Kaufman Hall reports. The ongoing COVID-19 pandemic is creating a perfect storm for health systems, which appear to be taking hits on both the hospital and physician practice sides of their business. The latest National Hospital Flash Report from consulting firm Kaufman Hall found that the median hospital operating margin index is well below 2019 performance at 2.7 percent year-to-date through September even with federal aid from the Coronavirus Aid, Relief, and Economic Security (CARES) Act funding. Without CARES Act funding, the median hospital operating margin index is -1.9 percent. Additionally, the Kaufman Hall earnings before interest, taxes, depreciation and amortization (EBITDA) margin index was well below 2019 performance, standing at 7.5 percent year-to-date with CARES Act funding and 3.2 percent without funding from the CARES Act. Mea...