AMERICAN HOSPITALS ARE ON THE VERGE OF MASS BANKRUPTCY

The COVID-19 pandemic could lead to the fact that by the end of June, many US medical institutions will suffer from the financial losses of more than $ 202.6 billion. North American experts came to this conclusion when analyzing the state of the healthcare system, which was faced with the consequences of the spread of coronavirus.

Panic moods are not groundless. Even large American companies such as HCA Healthcare, previously considered as the benchmarks of success, tighten their belts and suspend the payment of quarterly dividends, as well as the repurchases of stocks, let alone the smaller healthcare institutions.

Along with the large medical corporations, Americans are seriously concerned about the state of the rural hospitals. About a half of them are already experiencing serious difficulties.

Despite the financial support measures for the medical system that has been taken by the federal government, there is a lack of funds. The amount of $ 175 billion, allocated to the medical institutions, according to the experts, usually lasts only for a period from three weeks to a month of the work of clinic, including the treatment in nursing homes.

According to the American restructuring lawyers, a wave of bankruptcy petitions should be expected from the hospitals.

The hospitals depend on the health insurance system, but a pandemic leads to an increase in the number of people who have lost private insurance to pay for the hospital bills. The experts note that a number of COVID-19 hotspots, such as New York, Detroit, Chicago or Seattle, have financially strong healthcare systems. They are likely to withstand the current crisis. But even they are not immune to the threats. For example, the large medical network Quorum Health Corp. (includes 20 hospitals) filed for bankruptcy in April, unable to withstand the pressure.

According to the analysts, health problems will not disappear after the end of pandemic.

It only revealed the key problems that had been brewing for a long time. As it was noted by James Wesp, the manager of the health consulting service, the hospitals will have to undergo a major overhaul or simply close faster. However, the closure of hospitals means that the number of victims will grow.