Governmental bodies like counties, cities, or states own and run public hospitals. These hospitals often receive funding from taxes and act as safety-net providers for patients with low incomes and no insurance. Charity groups own nonprofit hospitals, which are exempt from paying taxes. These hospitals put their earnings back into the establishment and the neighborhood they serve. Private investors own for-profit hospitals, and they want to make money for their investors. Last but not least, medical professionals who have a financial stake in the facility own and run physician-owned hospitals.
In the United States, the proportion of physician-owned hospitals is rather low. The American Hospital Association estimates that only 5.6% of hospitals in the country are owned by physicians. These hospitals are frequently specialist care centers that concentrate on a single medical field, such orthopedics or cardiology. Policymakers have been debating physician-owned hospitals because of worries about conflicts of interest and patient safety.
Hospital financial health in the US has been significantly impacted by the COVID-19 pandemic. Since many elective treatments had to be postponed and the cost of treating COVID-19 patients skyrocketed, several hospitals suffered financial losses. The American Hospital Association estimates that between March and June 2020, hospitals and health systems lost $202.6 billion. The epidemic has also brought attention to how crucial it is for healthcare professionals to have enough personal protective equipment (PPE). Masks, gloves, gowns, and other PPE have cost hospitals a lot of money in order to safeguard their personnel and patients.
Some hospitals have been successful at this time despite the pandemic’s financial constraints. Instances of hospitals that have been able to weather the financial storm include those that have been able to sustain high levels of elective treatments or that have obtained significant government financing through initiatives like the CARES Act. However, the pandemic has expedited already-existing trends in healthcare, like the move toward value-based treatment and the use of telemedicine, which may have a long-term negative influence on the financial health of hospitals.
Finally, it should be noted that the ownership of hospitals in the United States is complex and varied, ranging from public to for-profit investors to physician-owned facilities. While the COVID-19 pandemic has significantly impacted hospitals’ finances, some have been able to continue to make money because to government assistance and sustaining high levels of elective treatments. The pandemic has also emphasized the need for healthcare workers to have proper PPE and may speed up current trends in the sector.