Covid was very profitable for hospitals

Turns out that conspiracy theory wasn't a conspiracy theory either

American hospitals made more money than ever during Covid, thanks to special government subsidies, a new study shows.

Hospital profit margins in 2020 and 2021 more than doubled compared to 2019, researchers reported in JAMA Health Forum last month. In all, hospitals made at least $16 billion more in profits during the two Covid years than they did in 2019, the researchers found.

Hospitals delayed profitable elective procedures early in the pandemic and had extra costs for traveling nurses and protective gear. But the 20 percent bonus they received for Covid patients and other special funding more than made up the difference for most hospitals.

“COVID-19 relief funding aided in operating margins reaching all-time highs,” the researchers wrote. “Funding amounts may have been larger than was necessary for many hospitals.”

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The data come from more than 4,400 hospitals, nearly every medical center in the United States. Hospitals that were already profitable tended to have the biggest gains.

Overall hospital operating margins rose from 2.8 percent before Covid to 6.5 percent in 2020 and 2021, the highest ever, the researchers found.

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(Nothing like a good pandemic to juice profits!)

SOURCE

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Fewer than 300 hospitals, or about 6 percent, went from profits in 2019 to losses during Covid, while almost 800 saw their losses turn into profits.

Some hospitals did far better, especially those that were profitable before 2020.

Those medical centers were presumably experts at maximizing their financial results even before Covid hit and moved quickly to take advantage of the new laws and bonuses. The most profitable 600 American hospitals each posted annual operating income of at least $38 million during Covid, the researchers reported.

Doin’ good by doin’ well, the American medical way.