Why Hospitals Are Laying People Off

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Coronavirus infections are expected to peak in the United States this week. As a result, hospitals all over America are reconfiguring to cope with an expected deluge of patients. They may get busier in the next few weeks, but that doesn't mean they're going to be making more money.

Quite the reverse, in fact. Because of the need to shift resources to COVID-19 treatment bays, hospitals have had to close other departments. That means postponing or canceling non-critical, elective surgeries like knee replacements and procedures like colonoscopies, which generate the bulk of revenues for hospitals. So, in many cases, hospitals are losing money. As a result, they're laying off staff. Sometimes thousands of staff. Today we talk with a hospital administrator about the challenges hospitals are facing right now, and how they're being forced to respond.

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