Plummeting healthcare spending due to COVID-19 had much to do with the U.S. gross domestic product falling 4.8% the first quarter of this year, as was reported by the U.S. Bureau of Economic Analysis.
Commenting on healthcare’s impact on the bruised GDP, the authors of a brief analysis issued by the Federation of American Hospitals (FAH) say the decline in hospital revenues is without historic precedent.
The situation reflects a nationwide falloff in essential as well as elective procedures, the authors add, and it “foreshadows a potentially devastating trend as many of America’s hospitals teeter on the brink of financial collapse.”
The analysis further points out that, by March 31, some 35 states had issued executive orders canceling elective procedures, “a factor that will almost certainly compound hospitals’ losses in April.”
In a blog post accompanying the analysis, FAH president and CEO Chip Kahn says the failing financial health of hospitals “could have a lasting negative effect on patient care and on America’s economic future.”