We’ve all heard the stories of how healthcare organizations have been impacted financially thanks to COVID-19. Not being allowed to do “elective” procedures has hit the bottom line of most healthcare organizations. The good news is that I’m starting to hear that many healthcare organizations are back to pre-pandemic levels.
To understand a bit more about how healthcare organizations are doing financially and what they did during COVID-19 to deal with the financial impact, I sat down with Bret Schiller, Head of Healthcare for Corporate Client Banking and Specialized Industries at J.P. Morgan Commercial Banking. He provided some great insights into how healthcare organizations reacted to COVID-19 from a finance perspective. Check out the video interview below:
I was fascinated by Schiller’s comments about line of credit levels and how many healthcare organizations drew down their line of credit so they had the cash available if needed during the crisis. Schiller noted that many of the other sources of capital for a healthcare organization weren’t available immediately after the shutdowns happened last year and so the banks were one of the only sources of capital available. He went on to note that many healthcare organizations have paid back the money they drew down during the crisis and that we’re now back to more or less where we were pre-pandemic from a borrowing and line of credit perspective.
I expect most CFO’s at healthcare organizations wouldn’t say we’re out of the woods yet. The government payments to healthcare has helped. However, there are still a lot of financial unknowns ahead including if we’ll have to shut down procedures again. Plus, we’ll see how telehealth reimbursement plays out long term. Check out the video above to see what Schiller thinks about this topic and what he thinks the long term impacts of COVID are going to be.
For more information about J.P. Morgan Commercial Banking: https://www.jpmorgan.com/commercial-banking/industries/healthcare
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