Healthcare Hurting

Surprisingly, healthcare was responsible for almost half of the 5% seasonally adjusted annual rate of decline in 20Q1 GDP, despite the Sars-Cov-2 pandemic. Turns out 1.5 million healthcare workers lost jobs in Q1 because hospital and doctors’ office revenues collapsed. Why? Because health insurance pays for procedures and generally not for outcomes. With hospitals full of low reimbursement Covid-19 patients, lucrative elective surgeries like knee replacements are not happening.