Half of U.S. hospitals in red without more federal dollars, association report finds

A report commissioned by the American Hospital Association found that 51% of U.S. hospitals are expected to have negative operating margins by the end of the year without additional federal support (Source: “Half of U.S. hospitals in the red by year's end without more federal support,” Modern Healthcare, July 21).

The new report found that U.S. hospitals' median operating margin could sink to -7% by the end of 2020 without additional federal government support to offset COVID-19 losses.

The American Hospital Association commissioned the report from healthcare consultancy Kaufman Hall and timed its release on Tuesday to coincide with bipartisan talks around a new federal COVID-19 relief package, just as increased unemployment benefits are set to expire. The prominent hospital lobbying group has released multiple reports during the pandemic to support its requests for more federal grants and loans.

According to the latest report, under an optimistic scenario, hospitals' median margin would be -1%. Under a less optimistic one, that margin could sink to -11%, the report found.