There’s no denying the COVID-19 pandemic has impacted – and will continue to impact – all aspects of society, especially the healthcare industry. Passed by the Trump administration on March 27, 2020, The Coronavirus Aid, Relief, and Economic Security (CARES) Act is expected to continue easing the financial burdens of hospitals incurred from the pandemic, which included increased COVID-related expenses and decreased revenue.
Short and Long-term Effects of the CARES Act
Short-term effects. Because of the spike in COVID-19 cases, hospitals and facilities of all sizes have had to endure skyrocketing costs associated with increased demand for staffing and supplies. They’ve also had to face a major decline in revenue due to the postponement and cancellation of elective surgeries and procedures, such as colonoscopies or cataract surgeries.
Funding from the CARES Act has provided short-term reimbursements to alleviate hospitals of increasing costs related to COVID-19 treatments while providing financial support for declining revenue.
Long-term effects. In addition to short-term assistance, the CARES Act is designed to help hospitals continue to battle long-term financial challenges as a residual of the pandemic. Because many patients across the U.S. are struggling to pay their medical bills, the bill mandates that insurance companies must waive cost-sharing for COVID-19 testing.
Furthermore, the CARES Act will continue to provide critical assistance to facilities suffering from financial losses related to the cancellation or postponement of procedures that have not yet been rescheduled.
While the CARES Act has provided hospitals with much needed assistance during the COVID-19 pandemic, it remains unclear as to how the $100 billion from the bill will be dispersed moving forward. As a healthcare facility, remaining vigilant about how the CARES Act will affect your bottom line will be key to navigating the months ahead.
Do you need to increase your healthcare facility’s staffing levels? Get in touch with AMN Healthcare and learn how our team can help you grow your workforce.