Financial Stress of COVID Continues to Cripple Medical Practices

A survey by the Physicians Foundation estimated that 8% of all physician practices nationally — around 16,000 — have closed under the stress of the pandemic. Many physicians are leaving medicine entirely because of the pandemic, and according to a survey from Medscape, almost 25% of doctors are considering retiring early.

According to the AMA the average physician has experienced a 32% drop in revenue since February of 2020. Patients staying away due to pandemic fears cause revenues to drop, but overhead remains the same, and the cost of PPE has been added on top of it. Telehealth services have not been able to completely replace dollars that were lost. Some who had emergency reserves to weather the storm has seen those reserves depleted. Many eligible for government loans have little or nothing left moving into 2021.

Even dental practices are feeling the squeeze. Patient visits are halved, and staggered. Now air purifiers and sneeze guards are de rigueur, as is PPE for staff. Rent and utility bills still come due, but PPP money is mostly gone. Some patients that need treatment are nervous about finances or out of work so they are looking for lower cost alternatives to expensive implants and dental work.

Burnout is taking even more of a toll on healthcare providers than before the pandemic, and financial stress is certainly a contributor. The COVID crisis has affected short term revenue, but if your financial position is solid, chances are you will emerge stronger in the long term. There are strategies healthcare providers can pursue to weather the financial storm of the pandemic. HERE are 6 steps to take right now that will have a BIG impact on your medical practice!