Hospital Revenue Losses Limiting Construction

By By Dan Hounsell
March 29, 2021

Kent E Roberts /

U.S. hospitals lost $323 billion in 2020 revenue, according to the American Hospital Association, primarily due to elective and non-emergency procedures canceled last year to prioritize COVID-19 patients. The association estimates that 2021 will see losses between $53 billion and $122 billion.

The impact on the bottom line for facilities has limited the capital projects that the hospitals are doing, according to Construction Dive.

Many projections at the beginning of the pandemic said healthcare construction would not see the same uncertainty that other sectors have. After all, hospital construction was deemed an essential service even in parts of the country where other types of construction projects were shut down.

Part of the hospital capital cash problem, said Mike Pedersen, strategy and market development director at Mortenson, is that hospitals are still tussling with the federal government and private insurers over COVID-19 patient reimbursements, which do not lend themselves to the same patient volume projections that hospitals use in their budget forecasting,

See the latest posts on our homepage Share

Topic Area: Construction

Recent Posts
Recent Posts

Mask Use in Healthcare Taking Toll on Environment

Adopting reusable masks can dramatically cut environmental impact of PPE waste


Savings, Security Driving Cloud Migration

Using cloud-based software becoming increasingly popular among healthcare facilities


$44.7 Million Project to Develop Texas Hospital

Psychiatric hospital planned for Dallas-Fort Worth area


$43.7 Million Dollar Project to Rebuild Florida Hospital Complete

The previous hospital was destroyed by a 2017 hurricane.


Staffing Shortage: Virginia Temporarily Closes Several Mental Hospitals

Five of eight of the state's mental healthcare facilities are closing admissions due to short staffing.


Post Comment


News & Updates • Webcast Alerts • Building Technologies

All fields are required.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.