New York-Presbyterian Hospital estimates that the COVID-19 outbreak could have a negative impact on operations of between $350 million and $700 million in its unconsolidated 2020 financial statements, according to a filing for debtholders.
Making a number of assumptions, including that there will be no assistance from the government or any insurance recoveries, hospital officials estimate that it would as a result post operating losses between $104 million and $454 million in calendar 2020. The health system had been expecting operating income of $246 million. The estimates could change materially, positively or negatively, as additional facts are learned. The hospital had 311 days cash on hand as of Jan. 31, but is still seeking to add to its line of credit.
In an emailed statement, the hospital said, "the COVID-19 outbreak is an unprecedented health crisis that will require an extraordinary amount of resources for an indefinite period of time. We have been planning and preparing and part of that includes ensuring the hospital remains on strong financial footing."
In addition, the statement said, "the financial health of the hospital is stable and there will be no impact on our ability to meet our mission."
On the clinical side, the bondholder filing noted that the hospital's COVID-19 testing capacity has increased from 60 per day to approximately 300 per day, and with the validation of a high throughput testing platform is expected to have the capacity to run 1,000 tests per day by the end of this week. The hospital has arranged for temporary additional space at New York-Presbyterian/Weill Cornell Medical Center for expansion of its emergency department, if needed. Laboratory staff has been increased so that itcan run tests 24 hours per day, 7 days a week.