Our healthcare contacts and clients continue to tell us that the COVID-19 economic impact to medical groups is severe. These groups have sustained a 55% revenue plunge on average, according to a new survey from the Medical Group Management Association (MGMA), a trade group based in Englewood, Colo.

Average patient volumes are down 60% during the same time period, the survey shows. Overall, 97% of medical groups are suffering negative financial repercussions as a direct result of the public health emergency (PHE), the MGMA survey reveals.

The survey also shows a dire projection of financial health in the weeks to come. As of April 8, about 22% of responding medical groups reported layoffs, and 38% said they had gone through with staff furloughs.

Fast forward one month, and more medical groups will have to cut staff. About 36% of survey respondents predict that by May 8 they will incur layoffs, and 60% will institute furloughs.

Conducted April 7-8, the survey involved more than 720 responding medical groups. About three-quarters of the respondents are part of independent practices with 50 or fewer full-time physicians.

In recent weeks, the federal government has taken measures to ameliorate the financial duress afflicting the health care industry. On April 10, HHS began distributing $30 billion directly to front line medical groups, providers and hospitals as part of a larger $100 billion health care relief fund.

Medical groups also can tap into advance payments from their regional Medicare administrative contractors (MAC) to secure upfront funds covering up to a three-month period.

We have been in contact with healthcare bankers, attorneys and owners of medical practices. The feedback we have received to-date suggests that many medical practices are still waiting to receive funds from the Paycheck Protection Program (PPP). There is a need for the federal government to provide additional funding to medical groups to insure we can receive the healthcare services that we all need and deserve.