The worldwide pandemic of coronavirus is a disaster with multiple layers of crushing impact
It is nearly impossible to fathom the magnitude of the devastation. BAD on top of BAD on top of BAD, like a layer cake made of fresh manure -- and you and I and everyone else has to chew and swallow a nice big slice every week for long as it takes to reach the other side.
We are in the midst of two of those layers right now.
- The DISEASE LAYER with its deadly impact all around the world. The overwhelm of the ED's, the ICU's and the ventilators. Tens of thousands of deaths. A trail of permanent disability and healthcare worker trauma stretching out for years ahead.
- The ECONOMIC LAYER with all sectors of the economy frozen in place, sudden massive unemployment and whole industry sectors and all small businesses in a fight for their lives. No sector is spared: airlines, restaurants, hotels, real estate, even commercial fishing.
Now comes a glimpse of the next major layer. This one is specific and massive impact on the HEALTHCARE INDUSTRY.
The providers are divided into two groups: the overwhelmingly busy and the slow/downsized/idle/furloughed.
With all the attention in the news given to the massive medical effort to address the acute illness of the most severely infected virus patients - and rightfully so - we must remember that the other half of the healthcare industry that does not deal with acute illness has basically been furloughed.
- Here in the USA all elective procedures have been cancelled for weeks now.
- Specialist practice volume is a fraction of normal as clinics struggle to provide routine care in a way that does not bring chronically ill patients in contact with those who are COVID-19 positive.
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This is Blog Post #329
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The Impact?
Massive financial losses in the US for profit healthcare system.
In our fee for service environment, cancelling elective surgery and procedures is the single most effective way to eliminate your organization's profit margin.
And losing money forces healthcare delivery organizations to behave very differently than when they have a profit margin.
These losses will result in a fundamental rearrangement of the healthcare industry and the day-to-day reality of all physicians and staff whenever we arrive ... on the far side of the crisis. Even the biggest fish may not survive the smack down. How do we know? It is already happening.
Today Mayo Clinic announced an anticipated $3B loss for 2020!!
- THREE BILLION DOLLAR LOSS IN 2020 (it's just April folks)
- AT THE MAYO CLINIC
The press release revealed that the health system with 68,000 employees is currently operating at 35 percent capacity, with surgery capacity even lower at 25 percent. To cope with the crisis, they also announced across the board pay cuts and furloughs.
Consider that in 2019,
- Mayo reported revenue of $13.8 billion
- Which was up nearly 10 percent from the previous year
- Net operating income topped out at $1 billion for the first time in Mayo history
And now this
What does Mayo's loss mean for you?
If you work in healthcare, this is about to get personal. Your income and net worth are in the cross hairs of the pandemic.
- Massive layoffs, pay cuts, and M&A activity are coming for everyone in healthcare.
- If if you have not felt one or more of these impacts yet ... it is only a matter of time.
- Cut back on your personal expenses now
- Be ready for layoff or cutback in your pay at any time
- Prepare to survive at least a year of financial hardship
- Stay safe, stay fit, stay centered
- Join us in the Lightworkers Forum weekend mastermind calls to support each other on our shared path to the far side of this paradigm shift.
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PLEASE LEAVE A COMMENT:
What layoffs, pay cuts and other impacts are you seeing in your area?