Providers Fear Growing Uninsured Rate to Keep Patient Volumes Down

August 10, 2020 - While many providers are starting to see their patient volume levels return to pre-pandemic levels, most physicians and advanced practice providers are still concerned about the effect COVID-19 will have on visits and care.

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Nearly three-quarters of (73 percent) of healthcare providers surveyed by LocumTenens.com in June 2020 said they were concerned the rise in newly uninsured patients will continue to keep people away from routine visits and elective procedures.

The Commonwealth Fund projects 31.5 million individuals to become uninsured by the end of the year. Of this group, nearly 3 million people will lose insurance coverage because of a pandemic-related job loss during the last three quarters of 2020, the think tank predicted.

Surgeons and psychiatrists are the most concerned about how this growing population will impact patient volumes and care delivery, LocumTenens.com reported. About 77 percent in each group said they were concerned, the staffing agency found.

Other healthcare practitioners expressing a high level of concern included those from emergency medicine, primary care, critical care, and anesthesia.

Providers are mostly concerned that their patients’ health would deteriorate as patients continue to avoid or delay routine and preventative care. They are also worried about the increase in mental health demands due to COVID-19 and the recession, according to the survey.

But consistently low patient volumes are also threatening the survival of many healthcare organizations.

Almost three-quarters (71 percent) of providers responding to the survey reported at least a 25 percent decrease in patient visits for preventative care during the pandemic, with over half (57 percent) of the respondents reporting at least a 50 percent decrease.

The loss of revenues from routine and preventative care visits devastated providers during the pandemic, prompting Congress to allocate more than $175 billion in emergency relief funds to keep hospitals and practices operating.

But independent practice owners are still concerned about the future of their organizations.

In the survey, 87 percent of providers who owned an independent practice said they worried about whether their practice would be able to stay open after the pandemic.

Surgeons who were practice owners were especially worried, with 82 percent saying they were very concerned for the future of their organization.

Healthcare providers have already had to take drastic measures to stay financially viable during the pandemic, including workforce reductions. More than half of providers responding to the LocumTenens.com survey were from an organization that either furloughed or laid off employees due to COVID-19.

Workforce reductions also did not discriminate, according to the survey. Providers at all experience levels were affected similarly by layoffs and furloughs. Although, those working five years or less had a slightly higher rate of unemployment by June (9 percent).

Additionally, over half of respondents from emergency medicine, primary care, and anesthesia reported that their organizations engaged in furloughs, layoffs, or both.

But even providers who remained employed during the pandemic were up against significant workforce challenges.

About 52 percent of providers said they experienced an increase in stress, burnout, or mental health issues due to COVID-19, with those in hospital medicine, primary care, and anesthesia reporting the highest levels of burnout and stress.

Merging with another organization or selling the practice is an option for exhausted providers who are unsure their practice will survive the pandemic. But not many surveyed providers plan to go that route.

In the survey, 88 percent of providers who practiced more than 30 years reported no plans to merge their practice with another organization.

Additionally, only 30 percent of providers practicing for five or less years had no plans to merge or sell their practice.

Struggling independent practices may find it difficult to find a partner willing to merge or purchase the organization. The pandemic has underscored the need for financially stable partnerships, and practices facing persistently low patient volumes may not align with an organization’s strategy to safeguard their operations in case a second wave of the coronavirus materializes.

Overall, the findings spell trouble for the financial stability of physician practices after the pandemic.