What Industry is Struggling (Surprisingly) During the Pandemic? Health Care

It may sound counterintuitive, but the recent lockdown to protect the public from the novel coronavirus is disrupting one of the largest industries in the nation: health care. According to the Becker’s Hospital Review, over 150 hospitals have furloughed workers as of April 21 due to low numbers of patients, and we expect more hospitals to be added to the list.

Many hospitals have halted all elective procedures, including surgeries, expecting to be swamped by COVID-19 patients. However, the outbreak seems well under control, and Florida hospitals have many beds open. Without patients, however, these hospitals and other care facilities are struggling to keep the lights on. They might need to consider filing for bankruptcy to get control of their debts.

Hospitals Around the Nation Could Close

Many states are reporting that multiple hospitals are on the verge of closing due to low census counts. Some of the hospitals include those in New York state. Though New York City has been hammered by the novel coronavirus, the rest of the state has been far less impacted. Without a flood of COVID-19 patients, upstate hospitals are emptying out. Indeed, Oswego Hospital is losing roughly $180,000 a day. Crouse Hospital in Syracuse is on pace to lose $20 million by the end of June.

Fortunately, Florida’s hospitals so far seem to have been spared. They are not overrepresented on the list of hospitals furloughing workers. Perhaps this is due to Governor DeSantis issuing a lockdown order a little later than Governors in other states.

Is Your Medical Practice Struggling?

Hospitals are not the only health care entities that have been struggling due to the changed economic conditions. Many small health care providers—including family physicians, dentists, rehabilitation specialists, etc.—are struggling, even if they have remained open over the past six weeks.

The economic turmoil is forcing many patients to cut corners and cancel routine medical care. Some people might even be terrified of leaving their homes to receive dental care, so they have cancelled appointments. As a result, many medical practices are currently struggling—and could continue to struggle until the economy manages to right itself.

No health care professional wants to consider filing for bankruptcy. However, it might be the right move, depending on their individual circumstances. In addition to eliminating certain debts, they might be able to wipe out malpractice cases against them. This is a significant consideration, since those cases can dramatically increase the cost of malpractice insurance. Of course, Florida does not require that doctors carry malpractice insurance, in which case a judgment against you could represent a serious financial loss.

Give Us a Call

This pandemic has caused an unparalleled economic disruption in Florida and around the nation. Many professionals are struggling to pay their bills. If you would like to discuss your options, please contact the Plantation bankruptcy lawyers at Nowack & Olson PLLC today. We have helped many professionals and small businesses file for bankruptcy protection, and we can help you as well. Call 888-813-4737 to schedule your free consultation.

Resource:

beckershospitalreview.com/finance/49-hospitals-furloughing-workers-in-response-to-covid-19.html

https://www.floridabankruptcynow.com/americans-are-carrying-record-amounts-of-consumer-debt/