The Covid-19 pandemic has exposed severe shortcomings in hospital financing. Many hospitals in hotspot areas could not provide an adequate supply of hospital beds; yet, even when filled to capacity, a number of hospitals suffered severe revenue losses. In no well-working market should demand exceed supply while revenue falls.
Preparing Hospitals for the Next Pandemic
A plan to remedy the shortage of U.S. hospital beds in a crisis.
June 10, 2021
Summary.
The Covid-19 epidemic response has shown that the U.S. is blessed with heroic physicians and other health care providers, researchers, and facilities. But it has also revealed a health care system that was woefully unprepared for the surge of pandemic patients. In the authors’ analysis, the primary blame rests on a hospital and insurance financial model geared towards providing high priced services rather than meeting all demands for care, including pandemics. Then they outline a plan for creating a hospital sector that can better respond to the population’s health needs during a time of crisis.
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New!
HBR Learning
Finance Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Finance Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Strengthen your fluency in financial statements.