Financial Fallout from COVID-19: 38 Hospitals Laying Off Workers

August 28, 2020 by Christen Aldrich

Filed under COVID-19 for Employers, COVID-19 for the Workforce

Last modified August 31, 2020

This article from Becker’s Hospital Review explains how the financial challenges caused by the COVID-19 pandemic have forced hundreds of hospitals across the nation to furlough, lay off, or reduce pay for workers, and others have had to scale back services or close. Additionally, a report from the American Hospital Association estimates that hospitals will lose more than $323 billion this year. The total includes $120.5 billion in financial losses the AHA predicts hospitals will see from July to December. 

Lower patient volumes, canceled elective procedures, and higher expenses tied to the pandemic have created a cash crunch for hospitals. Though Congress has allocated $175 billion in relief aid for hospitals and other healthcare providers, it isn’t enough to cover the lost revenue and higher expenses some are experiencing due to the pandemic. Hospitals are taking a number of steps to offset financial damage. Executives, clinicians and other staff are taking pay cuts, capital projects are being put on hold, and some employees are losing their jobs. More than 260 hospitals and health systems have furloughed workers in recent months and dozens others have implemented layoffs. 

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