NewYork-Presbyterian's operating losses could top $450M due to COVID-19

The COVID-19 outbreak could have a negative effect on NewYork-Presbyterian's operating results in 2020, according to a financial disclosure filed March 18.

The health system estimates the COVID-19 outbreak could have a negative impact on its operations of between $350 million and $700 million in 2020. NewYork-Presbyterian had expected operating income of $246 million in 2020, but due to the COVID-19 outbreak the system could have operating losses of $104 million to $454 million, according to the financial disclosure.

The health system noted that the estimates are based on several assumptions, including that the crisis will last for four months and there will be no insurance recoveries or federal, state or city relief provided. The estimates "may materially change, positively or negatively, as additional facts about the spread of the coronavirus are determined," the system said.

Even with the potential financial hit from the outbreak, NewYork-Presbyterian's outlook is stable. The health system has 311 days cash on hand and $3.7 billion of unrestricted investments that are convertible to cash within five business days, according to the disclosure.

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