So far, Bay Area hospitals have not been overrun by the expected surge of Covid-19 patients, but they've been hit by the costs of preparing to care for them. That’s why local hospitals— Stanford Health Care, UCSF and Marin General, for example— have begun to implement hiring freezes, pay cuts and furloughs.
Getting a hospital ready to handle a potential Covid-19 surge costs a lot of money. They have to secure supplies— such as protective gear and ventilators— beef up staffing and create the actual space to care for Covid-19 patients.
And at the same time, hospitals have seen significant drops in patient volumes due to shelter-in-place orders and the suspension of non-emergency surgeries, such as hip or knee replacement, which make up the lion’s share of a hospital’s revenue.