Epic Systems CEO Judy Faulkner told BusinessInsider.com that some health care systems and hospitals will face bankruptcy or need to be acquired to survive the Covid-19 pandemic.
“The health systems in general are in financial distress right now,” Faulkner said in the article available to BusinessInsider subscribers. “So that’s going to affect their staffing levels, their morale, their capital expenditures, their operating expenditures.”
Madison, Wisconsin-based Epic Systems develops software for electronic medical records.
Epic’s customers, like all health care systems nationwide, have experienced steep revenue declines of 35% to 55% after they suspended elective surgeries and procedures, Faulkner said. As a result, she predicted “there are going to be bankruptcies.”
Also, more consolidation among health care systems is likely as some smaller health care providers are sold to larger health systems “who can afford to stay afloat,” Faulkner said.