Abstract
ABSTRACT Background On 19 March 2020, Governor of California Gavin Newsom announced a statewide ‘shelter-in-place’, issued an executive order for hospitals to pause elective procedures, and requested state hospitals to increase inpatient bed supply to provide sufficient space to treat Covid-19 patients. These orders were lifted one month later, on 22 April 2020. However, these changes may have immediate and long-term impacts on hospitals’ revenue and expenses. Methods A linear mixed-effects model was used to capture the effect of Covid-19 on financial performance over time (from 2017 Quarter 1 to 2020 Quarter 4) of the repeated measurements for each hospital, with the interaction from resource availability and ownership structure. Results Covid-19 had a negative impact on hospital operating margin (OM) (ß = −.0337, p < .05) but not on the total margin (TM). We found a negative moderating role of staffed beds (ß = −.0001, p < .05) on hospital OM. We observed a positive moderating effect of for-profit hospitals for both OM. (ß = .0419, p < .01) and TM (ß = .0256, p < .05) when compared to not-for-profit hospitals. Conclusion Hospital managers need to understand the impact of Covid-19 on hospital financial performance and find ways to help hospitals recover from the pandemic.
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