The revenue loss hospitals are experiencing is beingcaused by multiple factors, including increased costs for PPE andstaffing. (Photo: Shutterstock)

Hospitals are in danger of closing as a result of the financiallosses they've suffered due to the ongoing COVID-19 pandemic,according to a new report from the American HospitalAssociation.

The association is projecting that hospitals will lose at leasta staggering $323.1 billion in revenue this year, as the pandemicdrives up prices for key equipment and supplies while also cuttingoff certain dollar generators for hospitals. However, these lossesare based on the assumption that hospitals and health systems willsee "patient volumes return to baseline levels by July 2021," theAHA report said.

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The revenue loss hospitals are experiencing is being caused bymultiple factors. For instance, state governments have implementedmultiple restrictions that have halted non-emergency procedureswhile also requiring hospitals to maintain a certain level ofpersonal protection equipment and a certain number of vacantbeds.

Hospitals have also had to pay more due to drug shortages,increased hours for workers, and more equipment and suppliesoutside of PPE.

"While the financial impacts estimated in this report arecomprehensive, they may under-represent the full financial losseshospitals will face in 2020," the AHA report said. These projectedlosses do not account for the rising number of coronavirus cases instates like Arizona, Florida and Texas.

The AHA noted that hospitals did get some financial relief fromthe CARES Act and the Paycheck Protection Program and Health CareEnhancement Act the U.S. government enacted earlier this year —approximately $54.6 billion of the money in the CARES Act went tohospitals. But that wasn't enough, the AHA said.

"Though significant, this amount represents just a fraction ofthe total financial losses already experienced by hospitals, andthese losses are likely to continue to grow," the AHA report said."Therefore, more financial support is urgently needed to safeguardAmerica's hospitals and health systems."

The association urged policymakers and others to "carefullyconsider the unprecedented financial pressured faced by ournation's hospitals and health systems." Without additional aid,hospitals might close if they suffer further losses.

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