Beyond the devastating humanitarian impact inflicted by the COVID-19 pandemic, the economic impact on healthcare systems is, and is expected to continue to be, significant. In McKinsey’s Health System Financial Resilience Survey, CFOs and finance executives of health systems indicated that they are expecting a dramatic impact on both operating margin and cash flow. Thirty percent of respondents expect that their 2020 operating margin will be 20 percent below forecasts, and 15 percent are not confident that they will have enough days’ cash-on-hand throughout the crisis. Despite the anticipated impact, the CFOs and finance executives indicated that, at this point, they are taking only a limited number of actions to address these anticipated financial challenges. In this infographic, we highlight key findings from the survey and outline a set of actions that health systems may consider to address both near-term liquidity challenges and the longer-term financial impact of the COVID-19 pandemic.
The financial impact of COVID-19 on health systems and how CFOs are responding