COVID-19 Resource Catalog-The Orthopaedic Forum: Economic Impacts of the COVID-19 Crisis

Pdf Summary

The COVID-19 pandemic has had significant economic impacts on the healthcare industry, including orthopaedic practices. Elective procedures account for a large portion of hospital costs and revenues, and the suspension of these procedures has put financial strain on healthcare organizations already struggling. The pandemic has also led to increased expenses for healthcare organizations, such as securing personal protective equipment (PPE) and creating additional intensive care units (ICUs) and COVID-19 recovery beds. Without federal and state relief, the financial viability of marginally resourced hospitals is at risk.<br /><br />To address the economic challenges, the federal government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, providing relief funds to individuals, businesses, and healthcare organizations. The Act designates $100 billion to hospitals and raises Medicare reimbursements for COVID-19 patients. Additionally, the Act includes several loan programs managed by the United States Small Business Administration (SBA), including the Paycheck Protection Program (PPP) for small businesses, which can provide assistance to private orthopaedic practices. However, the loans may not be sufficient for larger groups.<br /><br />Orthopaedic practices have been hit particularly hard as they rely heavily on elective procedures for revenue, and the suspension of these procedures has led to decreased income and increased financial risk. Many practices have had to furlough employees or withhold surgeon pay. The PPP loans and other government aid offer potential relief for these practices, but it is imperative that orthopaedic surgeons take an active role in understanding and applying for these programs.<br /><br />When elective surgeries eventually resume, it will be necessary to ensure the safety of surgical staff, patients, and the care team. Accurate and timely testing, availability of medical supplies, and clear national guidelines will be essential for a smooth transition.

Asset Subtitle

An Orthopaedic Perspective

Keywords

COVID-19 pandemic

orthopaedic practices

elective procedures

healthcare organizations

financial strain

PPP loans

government aid

Medicare reimbursements

safety of surgical staff

smooth transition