Public hospitals will add financial strain to urban counties amid pandemic, Moody’s says

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The expenses of getting ready for the COVID-19 pandemic, paired with profits losses connected to the suspension of optional procedures, are straining public health center budgets. As an outcome, medical facilities will likely rely on county federal governments for funding and support, Moodys stated..

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Moodys said that county governments with strong liquidity will be able to provide healthcare facilities increased running support without a hit to their finances, which the governance relationships between the healthcare facility and a county will be a big consider just how much monetary support can be offered..

Owning a public healthcare facility will add extra fiscal difficulties and dangers for big urban counties in the U.S. as the country deals with the coronavirus pandemic, according to a new report from Moodys Investors Service..

” Because of the coronavirus pandemic, big public health centers are most likely to sustain higher operating losses than regular, consistent with weaker operating efficiency in the not-for-profit healthcare facility industry,” said Ben VanMetre, assistant vice president at Moodys. “Hospitals and counties are both dealing with revenue and expenditure interruptions from the coronavirus, increasing the threat that large public hospitals will call on county governments to supply increased assistance simply as counties are facing their own budget pressures.”.

Alia Paavola –
Tuesday, October 13th, 2020