The ongoing medical needs of hundreds of millions of American do not magically stop in this pandemic. Lawmakers urgently need to address the damaging impact that our current response to Covid-19 is having on our outpatient care infrastructure. Despite the $130 billion earmarked for hospital support
in the $2 trillion coronavirus rescue package, large numbers of outpatient clinics are shutting down nationwide as they struggle to interpret contradictory, vaguely-worded government directives.
On one hand, health care facilities are deemed "essential" businesses that should remain open in state lockdowns. On the other hand, directives such as Surgeon General Jerome Adams' on March 14
request that providers "please consider stopping elective procedures until we can #FlattentheCurve."
A growing tide of outpatient clinics find it difficult to remain in business because of these conflicting guidelines. Is outpatient health care essential in this crisis, or is it elective?
In a March 18 briefing,
Centers for Medicare and Medicaid Services administrator Seema Verma said government guidelines canceling elective medicine "will help surgeons, patients and hospitals prioritize what is essential, while leaving the ultimate decision in the hands of state and local health officials and those clinicians who have direct responsibility to their patients." In essence, outpatient doctors should treat patients only for emergency procedures.
However, there are numerous diseases where each day of delay can lead to an ever mounting public health crisis that will remain long after Covid-19 has been contained. Should mammograms, colonoscopies, diabetic wound checks, skin cancer exams and cataract surgeries really be put on indefinite hold when we consider the enormous societal burden of cancer, diabetes, heart conditions and ophthalmic disease in the elderly?
Outpatient care facilities provide invaluable support within our health care system, which is why an extraordinary group of partners and I co-founded Chicago Pacific Founders
, a strategic firm that invests exclusively in healthcare services, including outpatient clinics.
At the end of 2019, the Bureau of Labor Statistics estimated there were more than 621,000 ambulatory care centers
actively providing care in the United States. However, because true emergencies account for a tiny percentage of a clinic's daily business, outpatient facilities have seen a sharp decline in patient traffic in recent weeks. In Texas, the chief executive for Premier Family Physicians, a network of 42 Austin-based primary care providers, reported that patient visits had dropped by about 30%
because of the coronavirus, even when accounting for an increase in virtual visits.
These clinics cannot afford to stay open for potential emergencies. As Premier's CEO shared with The Texas Tribune,
"To take away 30, 40% of your volume, the margins in your primary care business will run out in a matter of weeks or months." These economics explain why large numbers of outpatient facilities are in the process of shutting down.
Everyday health problems don't disappear in a pandemic. Within a short time, outpatient closures will lead to the further overcrowding of emergency departments with non-Covid-19 patients. This will make treating pandemic-affected patients more challenging and worsen the very capacity problem the government was attempting to solve by delaying elective procedures.