Implications and future strategies on cost management for hospitals during and after COVID-19

Vijay Pratap Raghuvanshi, Shiv Pratap Raghuvanshi


The coronavirus disease (COVID-19) pandemic is throwing a new factor into hospitals calculations about how to proceed with current and future healthcare strategy implementations. As entire nations encourage their populations to remain stay home, quarantine, avoid coming out and wear masks till lockdown open, while healthcare providers doctors, nurses, technicians and other administrative staffs are more active than ever in response to the outbreak of the novel coronavirus. We expect a significant increase in costs after the pandemic due to change in services and infrastructure, use of personal protective equipment and extra sanitization used by medical staff. To identify ways to improve liquidity, cash flow and cost management due to damage done by COVID -19, we systematically reviewed journals on cost management in hospitals, reports from healthcare finance management agencies, conducted focus groups webinar and websites that includes health policies, healthcare management costs, finance and factors such as departmental cost management in hospitals. The results were clubbed into two parts i.e. one was healthcare revenue challenge and second was strategies for regenerate revenue during and after COVID-19. COVID-19 has shown a significant impact on the healthcare revenue cycle, financial operations, supply chain management, hospital operations and even for those who provide finances. Hospitals and healthcare systems needs to do the work on war footing in supply chain, clinical services, diagnostics services and operations management by ensuring that the management drives the strategies, transform process, create cost-reduction goals and  identify possible sources of savings based on the organizations capital and liquid shortfall, using internal and external benchmarking. 


COVID-19, Hospital administration, Healthcare costs, Hospital cost, Healthcare strategy, Hospital cost management challenges

Full Text:



Keehan SP, Cuckler GA, Sisko AM, Madison AJ, Smith SD, Stone DA. National health expenditure projections, 2014-24: spending growth faster than recent trends. Health Affairs. 2015;34:1407-17.

Murthy VN, Okunade AA. Determinants of US health expenditure: evidence from autoregressive distributed lag (ARDL) approach to cointegration. Economic Modelling. 2016;59:67-73.

COVID-19: Prudent Financial Management for Healthcare Organizations. Available at Accessed on 29 April 2020.

Guidance Note on cost management in Healthcare sector. Available at: upload/Institute/Updates/Guidance-note-on-Health-care-Sector.pdf. Accessed on 15 May 2020.

Khan KS, Riet TG, Glanville J, Sowden AJ, Kleijnen J. Undertaking systematic reviews of research on effectiveness: CRD’s guidance for carrying out or commissioning reviews. NHS Centre for Reviews and Dissemination; 2001.

Jacqueline Lapointe, Practice Management News. How COVID-19 Is Impacting the Healthcare Revenue Cycle. Available at Accessed on 25 April 2020.

Cox C, Rudowitz R, Neuman T, Cubanski J, Rae M. How health costs might change with COVID-19, Health System Tracker. Available at Accessed on 25 April 2020.

Alexandra WP. the revenue cycle and COVID-19. Available at finance/revenue-cycle-and-covid-19-3-issues-3-responses. Accessed on 25 April 2020.

Cavallo JJ, Forman HP. The Economic Impact of the COVID-19 Pandemic on Radiology Practices. Available at 2020201495. Accessed on 25 April 2020.

Arnsdorf IA. Major Medical Staffing Company Just Slashed Benefits for Doctors and Nurses Fighting Coronavirus. Available at Accessed on 25 April 2020.

Mastrogiacomo M. COVID-19 Hotel Recovery Strategy: Top 10 Digital Strategies while travel is on Pause. Available at Accessed on 25 April 2020.

By Matthew Hutt, CPA, CGMA, The COVID-19 impact on the revenue cycle for hospitals and other healthcare providers. Available at Accessed on 25 April 2020.

Woods DJ. For Health leaders Media. Available at C1. Accessed on 27 April 2020.

Healthcare IT: Top Five Digital Trends Fueling Disruption in Healthcare. Accenture Bulletin; 2015. Available at: media/Accenture/Conversion-Assets/DotCom/Doc-uments/Global/PDF/Industries_15/Accenture-Hea-lthcare-IT-Vision-Five-Trends-Fueling-Digital-Disruption-in-Healthcare.pdf. Accessed on 27 April 2020..

Scheel O, Thiry E, Rhode SC, Berenbeck M. German health system put to the test: cost trap complexity. AT Kearney Dusseldorf Germany. 2011;5:14-21.