Health Affairs July 6, 2020
Michael E. Chernew, A. Mark Fendrick, Kyle Armbrester, François de Brantes

The COVID-19 pandemic has led to a dramatic decline in utilization of health care services. This reduction—in both high- and low-value services—has already had major clinical ramifications. The foregone utilization has also caused a significant decline in practice revenue. Data from physician practices indicate that even after accounting for the substantial increase in the use of telemedicine, in person and virtual visits to physicians fell over 50 percent; though they had rebounded somewhat by mid-June, these remain down substantially.

Hospitals are also suffering economically from the loss of admissions and outpatient procedures, though the CARES act provided significant support. Like physician practices, they report significant economic hardship and are furloughing some workers. Overall, as of early May, the health sector had lost 1.5...

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Topics: Bundled Payments, CMS, Govt Agencies, Health System / Hospital, Healthcare System, Insurance, Medicare, Patient / Consumer, Payment Models, Physician, Provider, Public Health, Value Based
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