Lessons of Pennsylvania’s $8.1 billion COVID loss apply nationwide

Editor's Note: 

Pennsylvania hospitals and health systems lost a total of $8.1 billion to COVID-19 between January 2020 and December 2022, HealthLeaders reported on January 18.

In addition to illuminating the new data from The Pennsylvania Health Care Cost Containment Council and The Hospital and Healthsystem Association of Pennsylvania, the article highlights staffing lessons that apply beyond one state. For example, Pennsylvania’s $1.3 billion in staffing costs—the most significant expense category—“highlights the immense financial strain incurred by hospitals in responding to the staffing demands posed by the pandemic,” the article reads. “CFOs still need to scrutinize these figures to gain a nuanced understanding of where financial resources were concentrated and explore avenues for financial resilience moving forward.”

According to the report cited in the article, other costs included:

• Testing expenses: $374 million
• Supplies and equipment expenses: $679 million
• Construction expenses: $28 million
• Housing care expenses: $9 million
• Other expenses: $434 million
• Revenue loss: $5.3 billion

“Pennsylvania's data through 2022 gives healthcare CFOs across the nation a granular look into these costs, providing valuable insights into the continued long-term financial repercussions of the pandemic” the article concludes.