Study Shows Iowa Hospitals Will Lose $433 Million Because of Pandemic

DES MOINES, Iowa - A new study shows Iowa hospitals have lost $433 million from the COVID-19 pandemic.

The study by a consulting firm also shows half of Iowa hospitals were operating at a financial loss at the end of October.

Dating back to March at the beginning of the pandemic, the hospitals have experienced tight operating margins as well as a major decline in surgeries.

The Iowa Hospital Association says the study shows the financial strains hospitals are facing because of COVID-19.

The estimated total cost of COVID-19 to Iowa hospitals from March through December is $1.25 billion, which is offset offset by relief funding, bringing the net loss down to $433 million.

The hospitals are also dealing with uncertainty over the possibility of having to return relief funds to the Centers for Medicare and Medicaid Services.

Here are the key Iowa hospital data trends from March to October:

  • 11% decline in outpatient visits.
  • 17% decline in inpatient discharges.
  • 22% decline in ambulatory surgeries.
  • 24% decline in inpatient surgeries.
  • 26% increase in expenses per discharge.
  • 29% decline in operating margin (with federal support, the average operating margin for Iowa hospitals is 2%).
  • 8.3% increase in the average length of stay for acute care patients.

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