Becker's Healthcare June 14, 2021
Researchers from Boston-based Harvard Business School and Durham, N.C.-based Duke University shared three ways hospitals can be better prepared for a future pandemic in a June 10 report published in Harvard Business Review.
The COVID-19 pandemic spotlighted the inefficiencies of hospitals’ financial models. Even as hospitals were filled to capacity, many hospitals encountered severe revenue losses. There is no effective model where demand increases, yet revenue plummets, the authors said.
The U.S. financial model relies on costly, highly reimbursed services, such as joint replacements, cardiac procedures and other elective services. COVID-19 cases used a lot of hospitals’ resources, but they offered lower profit margins than lucrative procedures, which were postponed at the start of the pandemic. The authors suggest that...
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