January 28, 2021
Covid-19 has been a paradox for US hospitals. They have been both overstretched in some departments, and rendered idle in others, and although in some cases they have seen increases in patient volume due to coronavirus outbreaks, they have by and large suffered significant financial losses.
Typically, the most profitable services hospitals offer are elective procedures, such as hip replacements or knee surgeries. They can be scheduled in advance, aren’t emergencies that require increased staffing or prolonged specialized care, and are often low-risk. These surgeries have a very high profit margin (up to 80%) and, alongside cardiovascular interventions, make up most of the profit for hospitals. On the other hand, infectious diseases and respiratory conditions such as Covid-19 have very little profit margin, particularly when patients require intensive care.