Why Healthcare Providers Need Help During the COVID-19 Pandemic
Ever since the novel coronavirus pandemic hit the United States, thousands of small businesses have closed their doors for good. The handful of businesses that closed temporarily are still struggling to pay rent and keep employees on payroll. Although small businesses fail frequently, nobody expected the economic devastation of a pandemic.
While most affected businesses are in the retail and food service industries, many healthcare organizations also need help. If these struggling healthcare organizations don’t get help soon, we could soon face a new kind of crisis.
Why healthcare organizations are struggling
The bottom line is that healthcare organizations – public and private – are facing a revenue crisis just like every other struggling business. Not only did the government mandate the cancellation of non-emergency health services, but people don’t want to visit hospitals until the coronavirus outbreak is under control.
The healthcare organizations that have the best chance of surviving will be those who seek healthcare provider consulting services early, before the problem has a chance to grow. There are ways to preserve profitability and reduce costs even in the middle of a pandemic with uncertainty growing by the minute. However, healthcare companies can’t face the battle on their own – they need help.
The domino effect of the COVID-19 crisis will hit healthcare organizations hard
The domino effect of the coronavirus outbreak will continue to adversely affect the healthcare industry. Businesses are closing their doors and people are out of work. When people lose their jobs, they also lose their employer-sponsored health benefits. This makes it harder for people to get the routine healthcare they need.
Even though routine healthcare services are suspended currently, those who have lost their insurance will have to wait quite a while to get a new policy. First, most won’t be able to get a job until the economy opens back up. Even so, they’ll need to follow their employer’s rules for qualifying for health insurance. They’ll also need to abide by open enrollment policies.
Once the economy is reopened, it will take people a while to get health insurance, which means healthcare companies can expect little-to-no revenue for an extended period of time.
Routine care is legally inaccessible for now
Although most people are choosing not to visit hospitals and doctors unless absolutely necessary, they really don’t have a choice. Non-emergency visits and procedures are being discouraged at the federal level. This means patients can’t schedule routine check-ups or screening tests. Even dental cleanings and elective dental surgeries have been suspended. The only way to get a dental appointment is if you’re in extreme pain and need immediate intervention.
Some healthcare organizations may not survive the economic impact
The cancellation of routine healthcare services is hitting healthcare organizations hard in terms of revenue. This is causing many clinics and organizations to let people go. If revenue doesn’t pick up soon, they’ll need to lay even more people off. If an organization manages to survive with a skeleton crew until the economy recovers, they’ll have to hire and train a new workforce from scratch. Training a workforce from scratch is expensive.
The uninsured won’t have new healthcare coverage for a while
Those who become uninsured due to a layoff can’t just get another job because the number of available jobs is dwindling by the minute. Without the promise of a new job, they can’t afford to spend their savings on supplemental health insurance programs.
Most uninsured people will only regain health coverage when the economy reopens and businesses are actively looking to hire.
Investors in healthcare companies could pull funds
Although experts have advised investors to treat the coronavirus pandemic like a bad flu season, some investors aren’t sure that’s the right approach. Experts are reminding investors that healthcare companies don’t generally experience major effects from bad flu seasons. However, the world’s economy, including healthcare services, don’t get shut down during the flu season. The far-reaching effects of the shut-down has investors rightfully concerned.
Healthcare organizations need help
Nobody can be certain about when this COVID-19 pandemic will end or how it will affect the economy long-term. However, we can be certain that if we don’t help our healthcare organizations, everyone will feel the effects.
Investors are in a unique position to help the most. We need investors who won’t withdraw financial support just because their ROI will be temporarily disrupted. We need investors who see their financial investments in healthcare as a long-term investment in the health and well-being of humanity.