Financial Effects of an Influenza Pandemic on U.S. Hospitals

Jason Matheny, Eric Toner, and Richard Waldhorn

Journal of Health Care Finance. 2007;34(1):58–63. © Aspen Publishers, Inc. Reprinted with permission.

Introduction: We estimate the financial effects of an influenza pandemic on U.S. hospitals, including the cost of deferring elective admissions and the cost of uncompensated care for uninsured patients. Using U.S. pandemic planning assumptions and national data on health care costs and revenues, a 1918-like pandemic would cause U.S. hospitals to absorb a net loss of $3.9 billion, or an average $784,592 per hospital. Policymakers should consider contingencies to ensure that hospitals do not become insolvent as a result of a severe pandemic.