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The Impact of COVID-19 on the Financial Performance of Largest Teaching Hospitals

The COVID-19 pandemic disrupted hospital operations. Anecdotal evidence suggests financial performance likewise suffered, yet little empirical research supports this claim. This study aimed to explore the impact of the pandemic on the financial performance of the most prominent academic hospitals in...

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Autores principales: Lalani, Karima, Helton, Jeffrey, Vega, Francine R., Cardenas-Turanzas, Marylou, Champagne-Langabeer, Tiffany, Langabeer, James R.
Formato: Online Artículo Texto
Lenguaje:English
Publicado: MDPI 2023
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10379302/
https://www.ncbi.nlm.nih.gov/pubmed/37510437
http://dx.doi.org/10.3390/healthcare11141996
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author Lalani, Karima
Helton, Jeffrey
Vega, Francine R.
Cardenas-Turanzas, Marylou
Champagne-Langabeer, Tiffany
Langabeer, James R.
author_facet Lalani, Karima
Helton, Jeffrey
Vega, Francine R.
Cardenas-Turanzas, Marylou
Champagne-Langabeer, Tiffany
Langabeer, James R.
author_sort Lalani, Karima
collection PubMed
description The COVID-19 pandemic disrupted hospital operations. Anecdotal evidence suggests financial performance likewise suffered, yet little empirical research supports this claim. This study aimed to explore the impact of the pandemic on the financial performance of the most prominent academic hospitals in the United States. Data from the 115 largest major teaching hospitals in the United States were extracted from the American Hospital Directory for three years (2019–2021). We hypothesized that the year and region would moderate the relationship between a hospital’s return on assets (financial performance) and specific operational variables. We found evidence through descriptive statistics and multivariate moderated regressions that financial positions rebounded in 2021, mainly through reductions in adjusted full-time employees and liabilities and an increase in non-operating income. Our results also found that the Midwest region significantly outperformed the other three regions, particularly in terms of lower salaries and operational expenses. These findings suggest potential for future initiatives encouraging efficiency and finding alternate sources of income beyond patient income. Hospitals should focus on improving financial reserves, building out non-operational revenue streams, and implementing operational efficiencies to foster better financial resiliency. These suggestions may enable healthcare administrators and facilities to adapt to future pandemics and environmental turbulence.
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spelling pubmed-103793022023-07-29 The Impact of COVID-19 on the Financial Performance of Largest Teaching Hospitals Lalani, Karima Helton, Jeffrey Vega, Francine R. Cardenas-Turanzas, Marylou Champagne-Langabeer, Tiffany Langabeer, James R. Healthcare (Basel) Article The COVID-19 pandemic disrupted hospital operations. Anecdotal evidence suggests financial performance likewise suffered, yet little empirical research supports this claim. This study aimed to explore the impact of the pandemic on the financial performance of the most prominent academic hospitals in the United States. Data from the 115 largest major teaching hospitals in the United States were extracted from the American Hospital Directory for three years (2019–2021). We hypothesized that the year and region would moderate the relationship between a hospital’s return on assets (financial performance) and specific operational variables. We found evidence through descriptive statistics and multivariate moderated regressions that financial positions rebounded in 2021, mainly through reductions in adjusted full-time employees and liabilities and an increase in non-operating income. Our results also found that the Midwest region significantly outperformed the other three regions, particularly in terms of lower salaries and operational expenses. These findings suggest potential for future initiatives encouraging efficiency and finding alternate sources of income beyond patient income. Hospitals should focus on improving financial reserves, building out non-operational revenue streams, and implementing operational efficiencies to foster better financial resiliency. These suggestions may enable healthcare administrators and facilities to adapt to future pandemics and environmental turbulence. MDPI 2023-07-11 /pmc/articles/PMC10379302/ /pubmed/37510437 http://dx.doi.org/10.3390/healthcare11141996 Text en © 2023 by the authors. https://creativecommons.org/licenses/by/4.0/Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
spellingShingle Article
Lalani, Karima
Helton, Jeffrey
Vega, Francine R.
Cardenas-Turanzas, Marylou
Champagne-Langabeer, Tiffany
Langabeer, James R.
The Impact of COVID-19 on the Financial Performance of Largest Teaching Hospitals
title The Impact of COVID-19 on the Financial Performance of Largest Teaching Hospitals
title_full The Impact of COVID-19 on the Financial Performance of Largest Teaching Hospitals
title_fullStr The Impact of COVID-19 on the Financial Performance of Largest Teaching Hospitals
title_full_unstemmed The Impact of COVID-19 on the Financial Performance of Largest Teaching Hospitals
title_short The Impact of COVID-19 on the Financial Performance of Largest Teaching Hospitals
title_sort impact of covid-19 on the financial performance of largest teaching hospitals
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10379302/
https://www.ncbi.nlm.nih.gov/pubmed/37510437
http://dx.doi.org/10.3390/healthcare11141996
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