Chris Lyons 11/6/20 2:59 PM 7 min read

Hospitals Filing Bankruptcy Over Coronavirus

Nearly a year after the first reported case of COVID-19 in the United States, hospitals across the nation are still feeling the impact of this pandemic. From PPE shortages to massive backlogs, 2020 has proven difficult for hospitals and other healthcare facilities. 

And as the year comes to a close, the struggle is not over.

Dozens of hospitals are filing for bankruptcy and fighting to keep their doors open during the pandemic.

According to Bloomberg Law, at least three dozen hospitals have filed for bankruptcy in 2020 due to the coronavirus pandemic [1].

As critical COVID-19 cases reached record highs this past spring and summer, many hospitals began facing financial hardships as they struggled to order large quantities of PPE to protect their healthcare workers during risky procedures and room entries and exits. The influx of patients also led to an increased need for ICU beds, ventilators, and other costly equipment.

While purchasing these items certainly took a financial toll on hospitals across the United States, one of the biggest factors leading many hospitals to file for bankruptcy were mandatory holds on elective surgeries and procedures. When many political officials required hospitals to postpone these surgeries, hospitals started missing out on a significant portion of their income, which put many hospitals in a poor financial situation.

Although many hospitals were able to manage their financial hardships due to federal grants and loans like those made available through the Coronavirus Aid, Relief and Ecomonic Security (CARES) Act, there have not been moves in Congress or the White House toward providing more aid in the future as cases begin to climb and costs continue to increase [1].

According to the American Hospital Association, hospitals are estimated to lose over $323 billion this year [2]. Considering this prediction, there will be several more hospitals joining the over three dozen that have already had to close their doors in 2020.

Can hospitals survive the next wave?

These financial concerns are especially worrisome considering the current high level of cases and the expert predictions of a new, and potentially worse, wave coming in the near future.

According to a tweet by Dr. Shereef Elnahal, president and CEO of University Hospital in Newark, New Jersey, covid test positivity rates are up as are hospitalizations due to the coronavirus. “Our second wave has begun,” he claims.

Dr. Fred Cerise, the CEO of Parkland Health and Hospital System in Dallas, Texas, has also noticed an increase in cases, and he notes that this second wave will end up being more severe than the first [3]. “The number of COVID cases at Parkland has tripled in just over a month,” he claims, adding that without an increase in social distancing and mask use, “There is reason to believe this current wave will be worse than the one we experienced in the summer.”

As an increasing number of hospitals begin to see an uptick in COVID-19 cases, their financial hardships will continue.

Without the opportunity to recuperate from the losses accrued from postponing elective surgeries and procedures, purchasing large quantities of PPE for employees, hiring more healthcare professionals, and providing more ventillators and other lifesaving equipment, more hospitals are going to be fighting to stay open during this second wave.

How the SCONE™ can help

The new wave of COVID-19 cases has the potential to financially ruin hospitals and healthcare facilities across the nation. SCONE™ Medical Solutions created the SCONE™ to help prevent this from becoming a reality.

The SCONE™ is a medical device that uses negative pressure technology to serve as an active barrier, providing a layer of protection between healthcare workers and infectious aerosols and droplets.

In addition to helping protect healthcare workers during aerosol producing procedures like intubations, these single use devices can help hospitals save money by..

- Reducing the need for PPE and multiple PPE changes

- Increasing throughput and helping clear up costly backlog

- Decreasing the demand for ventilators.

The SCONE™ can help hospitals handle COVID-19 cases during this second wave more efficiently, helping them save money and fight closing.

 

The SCONE™ has been authorized by the FDA for Emergency Use. Connect with us to learn more about how to bring SCONE™ into your facility.

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Chris Lyons

Chris Lyons is known in the musculoskeletal industry as a “lifer” by many who know him with a dedication of more than 30 years to industry leading medical device manufacturers. Graduating from University of Memphis in 1990, with Marketing and Sales degree, Chris entered the industry at a time of great prosperity and yet the beginning of change. Serving Smith and Nephew plc since 1989, Chris held numerous marketing roles, driving product launches, engaging surgeons, and creating intellectual property predominantly in the companies Knee and Hip product lines. Additionally, he spent two years in the Smith and Nephew Sales Force to learn the underpinnings of what made the organization successful. In 2005, Chris joined Medtronic Spine and biologics, with the first three years being focused on driving growth of the International biologics business of Medtronic. The opportunity presented itself to move into the realm of Business Development for the next 10 years, working with all of the executive and cross functional leadership to transact various acquisitions, minority investments, license and distribution agreements. During this time Chris was also selected to join the Board of the Southeast Medical Device Association (SEMDA) of which he remains a contributor, also serving as Chairman of the board for SEMDA for 2016. For the last three years, Chris has run a successful Consulting firm in the medical device space, Southern Metric Consulting LLC, working with multiple clients across the industry, including SCONE Medical Solutions, as VP of Strategy.