Date of Award

2020

Degree Name

Healthcare Administration

College

College of Business

Type of Degree

M.S.

Document Type

Research Paper

First Advisor

Dr. Alberto Coustasse

Abstract

Introduction: The pandemic of COVID 19 presented a unique challenge to hospitals and healthcare systems that they have been struggling to function in. Operating costs had increased with new protocols, planning, operating space, supplies, and staffing. This coupled with the loss of revenue has led to approximately 10% - 20% salary reductions, furloughs, and loss of benefits such as PTO and vacation days to employees. Hospital’s cash reserves are being depleted due to increased operations costs and reduced revenue. Government funding, such as the CARES Act provided by the sanction of the Department of Health and Human Services Office, will only help keep the doors open and not create profitability for the hospitals. Efficiency and cost restructuring have been deemed necessary during the financial crisis brought upon by the COVID 19 pandemic.

Purpose: The purpose of this research was to identify the financial components impacting the hospital system’s profitability with new protocols that have been implemented since combating issues related to COVID 19.

Methodology: The intended methodology for this qualitative study is a semi-structured interview with managerial employees of healthcare organizations and a literature review guided by the Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA) diagram.

Results: The economic impact on hospitals has led to drastic reductions in the profitability of hospitals by eliminating elective surgeries for months, changing the traditional workforce models, and disrupting the supply chain of essential medical equipment and medication.

Discussion/Conclusion: The research demonstrated that suspension of elective surgeries, dramatic modifications to the workforce, and disruption to the supply chain have immensely impacted hospitals and their ability to generate profitability.

Subject(s)

Health services administration.

Health facilities -- Business management.

COVID-19 (Disease) -- Economic aspects.

Hospitals -- Accounting.

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