Smoke from ever-growing wildfires increases borrowing costs for hospitals and other healthcare facilities. Finance Department of Business College in University of Nevada, Reno.
In fact, a working paper developed by researchers suggests that if a Nevada hospital issues $90 million in bonds in 2020 to fund a construction or expansion project, it will result in an additional $1.6 million in interest as a result of smoke. I found that I would likely pay the fee. From a California wildfire.
In turn, higher borrowing costs could increase daily costs of staying in hospitals and nursing homes for the next decade in areas such as the west where wildfire smoke is particularly severe. The recent catastrophic fire in Los Angeles has put the issue even further in spotlight.
“Municipal bond investors recognize that wildfire smoke is an increasing problem and an ongoing problem. They priced it on bonds.Wilkov said.
Some of the effects of wildfire smoke on hospital finances are clear. Emergency room visits to treat asthma and other respiratory diseases can increase when wildfire smoke is generated from a fire.
Especially in low-income counties, these visits may include more uninsured or underinsured patients than they can't pay for care. It weakens the hospital's ability to pay off borrowers.
“Wilkov's smoke hurts the most vulnerable populations, which can increase hospital costs,” Wilkoff said.
However, some of the impact of wildfire smoke on healthcare funding is more subtle.
For example, researchers found that younger, better people are more likely to leave the county with permanent contamination from wildfire smoke. Their departure leaves the poorer people who will cause more tension in the hospital's finances.
“Given that many elderly people are Medicare insurance and many low-signal residents are not covered by insurance, hospitals in high-smoke areas face greater operational challenges and credit risks in the long run. You may be exposed,” the researcher wrote.
Wildfire Smoke often crosses state boundaries and sometimes has healthcare and economic impacts on people across the country, so local or national approaches may be needed to mitigate harm. He said there is.
“The true cost of a wildfire can be much greater than the state's own costs. For example, living here in Reno has spent more than a few days causing the horrific smoke caused by the California fires,” he said. “This suggests that there is a role that states should play for the states and federal funds that come along to help mitigate wildfires to prevent smoke.”
Research focusing on local government finances and real estate has been founded by the University of Illinois, Chicago and Federal Reserve Bank Lewis A. Lopez and Dermot Murphy of Iran, Lewis A. Lopez and Dermot Murphy of the University of Illinois. Dallas with Wilkoff, including Murphy.
