CEO DATELINE - Associations: Hospitals, airlines losing billions of dollars
CEO DATELINE - Associations: Hospitals, airlines losing billions of dollars
- May 6, 2020 |
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Walt Williams
Two associations representing U.S. hospitals and airlines say their industries are bleeding tens of billions of dollars every month as a result of the COVID-19 pandemic.
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The American Hospital Association issued a report Tuesday finding that U.S. hospitals expect to lose an average of $50 billion a month from March 1 to June 30 as a result of the virus. The figure includes the costs of COVID-19 hospitalizations, canceled and foregone services, purchasing needed personal protective equipment and providing additional support to hospital workers.
"America's hospitals and health systems have stepped up in heroic and unprecedented ways to meet the challenges caused by COVID-19," AHA CEO Rick Pollack said in a statement. "However, the fight against this virus has created the greatest financial crisis in history for hospitals and health systems. While we appreciate the support and resources from Congress and the administration, many hospitals are still on the brink."
On Wednesday, Airlines for America will tell Congress that airlines are currently losing $10 billion a month and averaging fewer than two dozen passengers per domestic flight, the financial news site The Street reported. A4A Nicholas Calio is scheduled to testify before the U.S. Senate Committee on Commerce, Science and Transportation, which is holding a hearing on the impact of the pandemic on the aviation industry.
In prepared remarks, Calio said airlines had been experiencing a "golden age" before the virus struck. A4A released figures the day before showing the industry supports a total of 10 million jobs, including the 700,000 people who work directly for airlines.
"In January and February, U.S. airlines saw year-over-year increases of 5.5% and 6.7%, respectively," the statement said. "Then the bottom fell out. In the late April, passenger volumes were down an unfathomable 96% to a level not seen since the 1950s, before the dawn of the jet age."
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