NewYork-Presbyterian expects financial damage from coronavirus
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NewYork-Presbyterian, one of the largest hospital systems in New York City, is anticipating the coronavirus outbreak will trigger anywhere from $350 million to $700 million in losses, according to a new financial disclosure.
The big picture: NewYork-Presbyterian is in one of the hardest-hit states and was forced to delay all elective surgeries and procedures, which will ding its revenue and profit. But even with a nine-figure negative swing, the system is not in danger of going under.
Details: NewYork-Presbyterian's coronavirus estimates made several assumptions.
- It assumed the crisis will last four months, the disease will progress here like it has elsewhere and that the system will have to allocate money for extra personnel. It made undisclosed projections of how many COVID-19 patients would be admitted and how many surgeries would have to be postponed.
- NewYork-Presbyterian budgeted for a $246 million operating profit this year, but with its estimates, it now expects to lose anywhere from $104 million to $454 million.
Yes, but: The system has 311 days of cash on hand, plus its hospitals will be paid for COVID-19 patients — meaning there is no immediate financial peril.
- NewYork-Presbyterian — like many other large, tax-exempt hospital systems across the country — has built a regional medical empire by garnering lucrative commercial insurance rates on elective surgeries and other procedures. The pandemic is putting that entire business model on hold.
What to watch: Hospitals are asking Congress for at least $1 billion in additional funds as well as payroll tax breaks to offset coronavirus costs.