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One year ago, Q1 2020 was closing with an emerging awareness of the pandemic that was about occur. The quarter ended with a relatively high number of announced transactions, but with very few large transactions, leaving average seller size by revenue at just $172 million for the quarter.

For many hospitals and health systems around the country, COVID-19 threatens to create long-term negative changes to volumes, revenues, and margins on top of the pressures that weighed on hospitals even before the pandemic.

February 2021 was another challenging month for U.S. hospitals and health systems, as margins were affected by continued low outpatient volumes combined with declining inpatient volumes following January’s record-high COVID-19 hospitalizations.

As the second year of the pandemic continues, health systems are preparing for an uncertain future trajectory while continuing to care for patients impacted by COVID-19.

One year into the COVID-19 pandemic, health system leaders continue to confront an extremely volatile operating environment.

For America’s hospitals, positive margins create the ability to invest in new facilities, treatments, and technologies to better care for patients, and to build reserves to be ready for a future made highly uncertain due to the effects of the COVID-19 pandemic.