International Journal of Health Policy and Management

International Journal of Health Policy and Management

For-Profit Hospitals Out of Business? Financial Sustainability During the COVID-19 Epidemic Emergency Response

Document Type : Perspective

Authors
Florien Margareth Kruse 1
Patrick P.T. Jeurissen 1, 2
1 IQ Healthcare, Radboud University Medical Center, Nijmegen, The Netherlands
2 Ministry of Health, Welfare and Sport, The Hague, The Netherlands
10.34172/ijhpm.2020.67
Abstract
This perspective argues that for-profit hospitals will be heavily affected by epidemic crises, including the current coronavirus disease 2019 (COVID-19) outbreak. Policy-makers should be aware that for-profit hospitals in particular are likely to face financial distress. The suspension of all non-urgent elective surgery and the relegation of market-based mechanisms that determines the allocation and compensation of care puts the financial state of these hospitals at serious risk. We identify three organisational factors that determine which hospitals might be most affected (ie, care-portfolio, size and whether it is private equity [PE]-owned). In addition, we analyse contextual factors that could explain the impact of financial distress among for-profit hospitals on the wider healthcare system.
Keywords
For-Profit Hospitals
COVID-19
Epidemics
Financial Resilience
Subjects
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International Journal of Health Policy and Management
Volume 9, Issue 10
October 2020
Pages 423-428

  • Received Date 05 April 2020
  • Revised Date 30 April 2020
  • Accepted Date 01 May 2020
  • First Published Date 01 October 2020
  • Published Date 01 October 2020