As Americans delay elective surgeries and avoid doctors and hospitals during the coronavirus pandemic, healthcare spending declines have more than offset the added costs of COVID-19 care, insurance executives and experts say, boosting U.S. health insurer profits.
FILE PHOTO: Nurse Leah Silver cares for a coronavirus disease patient in the COVID ICU at the University of Washington Medical Center - Montlake during the COVID-19 outbreak in Seattle, Washington, U.S. April 24, 2020. REUTERS/David Ryder
“The costs from COVID-19 are going to be actually very small and more than outweighed by the deferral of elective procedures. The net impact is going to be positive for them,” said Jeff Jonas, portfolio manager with Gabelli Funds. The largest U.S. for-profit hospital operator, HCA Healthcare Inc, said it has seen a 70% drop in outpatient surgeries so far in April compared with a year ago, while inpatient admissions declined 30%.
Some expect a gradual return of patients for conditions other than COVID-19 and treatments delayed by the public health emergency. UnitedHealth warned last week that medical costs would likely increase in the second half of the year.
Some healthcare appointments that are canceled because of the pandemic will not return because people will decide not to have surgery, or will not need a sick visit, Nimmer said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Going to war': Hotels become barracks for health care workers during coronavirus pandemicHotel authorities say most hotels still up and running are housing workers, while some have offered space for hospital operations or to provide rooms for the homeless or quarantined individuals.
Read more »
Boris Johnson to go back to work MondayU.K. Prime Minister Boris Johnson will go back to work Monday following his hospitalization earlier this month with Covid-19
Read more »
VC investors say to expect a slowdown in merger, acquisition activity - Business InsiderUncertain how long the coronavirus recession will last, large potential acquirers may cut costs and scrap their growth plans.
Read more »
Opinion | We must address the social determinants affecting the black community to defeat covid-19The coronavirus has further exposed the reality of racial health disparities in the United States.
Read more »
As Coronavirus Cases Climbed, Private-Equity-Owned Hospital Faced ClosureA playbook that often includes loading portfolio companies with debt, selling assets and sometimes shutting hospitals is adding to the strains of health-care systems as they battle the coronavirus pandemic.
Read more »