While the health care ecosystem is broadly returning to work, nursing care facilities remain an exception. In the immediate aftermath of the pandemic and state-wide prohibitions on non-emergent, or elective, procedures the health care ecosystem shed 2.27 million jobs in August, the first broad job loss in health care in decades. … READ MORE >
Health care
CHART OF THE DAY: Health care costs rise while tax revenue stagnates
As health care continues to represent a larger portion of U.S. gross domestic product, the federal government’s ability to finance that expenditure through tax revenues has relatively declined. Corporate taxes as a percent of GDP peaked at 2.6% in 2007. In the aftermath of the global financial crisis that proportion fell to 1% in 2009 and recovered to 1.9% in 2015. In 2018, the last year for which we have data, it was again at 2009’s level of 1%. … READ MORE >
As coronavirus spreads across the nation, aid to hospitals lags
As Congress debates a new round of stimulus measures to blunt the human and economic toll of the coronavirus, it has an opportunity to rethink the way it supports those who are working on the front lines of the pandemic: health care providers. … READ MORE >
Businesses already strained by COVID-19 should prepare for hurricane season
Forecasters predict a 70% chance that this hurricane season will be worse than normal. For businesses already stretched thin by the coronavirus pandemic, the grim forecast comes at a perilous time. Sectors such as insurance, real estate, hospitality and health care are particularly vulnerable. … READ MORE >
Amid resurgence of coronavirus, health care providers feel mounting pressure
Despite the central role that health care providers have played in treating patients with the virus, the industry continues to face significant financial pressure. Without some kind of relief from the coming fiscal cliff, those providers could be in even more dire financial circumstances … READ MORE >
How hospitals can prepare for new price transparency rules
A recent court ruling has given the Trump administration a major victory in its push for transparency in health care pricing, and has left many health care providers scrambling to meet new requirements. … READ MORE >
After suffering losses, health care providers could face a reckoning on debt covenants
On June 30, the financial results from health care providers with publicly traded bonds will be measured, providing a window into their financial condition and whether the providers that took on debt to fuel their growth will be able to meet their bond covenants. … READ MORE >
Trump administration identifies 5 companies for government support in vaccine effort
Drug developers, academic institutions and government agencies across the globe are investigating more than 100 potential vaccines for the coronavirus. The Trump administration on Wednesday identified a handful of organizations that it believes are the most likely to produce a viable vaccine candidate, The New York Times reported. This is … … READ MORE >
Testing, testing, testing: Preparing for the reopening of the economy
The idea of reopening the economy is somewhat of a misnomer. The economy will not return to normal all at once, and there is a clear risk of a second wave of the pandemic coming with the relaxation of shelter-in-place orders around the country. Since some governors are in the process of relaxing these restrictions, we thought this is the perfect opportunity to discuss the risks around those decisions. … READ MORE >
New relief is approved for hospitals, but challenges remain
Over the past few weeks, we have been reaching out to our clients as well as hosting several virtual CFO Forums. Through those interactions, our clients in the health care sector have been painting a grim picture of the financial effects of the coronavirus. … READ MORE >