Health Systems Trying To Survive Economic Hit, But Future Remains Uncertain
“We plan on surviving this,” said Wilmington Health CEO Jeff James. “We just don’t know what it’s going to look like on the other side. We’re going to keep our doors open as long as we possibly can.”
Modern Healthcare:
Financially Devastated Health Systems Face An Uncertain Future
Once they stopped performing elective procedures in mid-March, providers of all types and sizes liken their revenue trajectory to a car going off a cliff. The damage came swiftly, and even their best cost-cutting efforts and billions in government aid weren’t enough to stop the bleeding. “It’s really stunning and remarkable how quickly the revenue flow dissipated over the course of just several days, frankly,” said Tim Weir, CEO of Olmsted Medical Center, a one-hospital system in Rochester, Minn., that anticipates a $25 million revenue decline over the months of April, May and June. The sharp revenue decline coupled with the higher costs of labor, supplies and treatment for COVID-19 patients will culminate in hospitals losing a collective $202.6 billion from March 1 to June 30, according to an estimate from the American Hospital Association. (Bannow, 5/16)
Boston Globe:
Partners HealthCare Hit By Steep Loss In Face Of Pandemic Shutdown
The state’s largest hospital network on Friday detailed the initial toll the coronavirus pandemic has taken on its finances. The prognosis: The pain may last for months. Partners HealthCare, the parent of Massachusetts General and Brigham and Women’s hospitals, reported an operating loss of $178 million in the fiscal second quarter that ended March 31, before the COVID-19 crisis reached its peak. The loss, its first since the fourth quarter of fiscal 2017, compared with an operating profit of $107 million in the year-earlier period. Revenue was little unchanged at $3.43 billion as expenses climbed 9.5 percent. (Edelman, 5/15)
San Francisco Chronicle:
1 In 3 Primary Care Doctors Fears Having To Close Practice Over Coronavirus
More than a third of primary care doctors in California surveyed this month by an Oakland foundation worried they will be forced to close their practice or clinic because of financial impacts from the coronavirus pandemic. The survey of 350 physicians across the state, released Friday, found that 37%, about 130, said they were “very” or “somewhat” worried that they will have to permanently close their doors. Doctors at practices with fewer than five physicians were especially concerned. More than half of those doctors, 63, said they fear they will have to shut their clinic for good. (Moench, 5/16)
Modern Healthcare:
Safety-Net Hospitals Worry COVID-19 Could Disqualify Them From 340B Discounts
Some safety-net hospitals are concerned that delays of non-urgent procedures due to the COVID-19 pandemic could make some them ineligible for the 340B drug discount program. The hospitals are concerned drastic changes in the number of patients coming through their doors could alter their payer mixes and temporarily change their 340B eligibility, so they are asking the Trump administration and Congress to protect them. Depending on the long-term economic impacts of the pandemic, there's also a chance that more facilities might become eligible if their Medicaid patients increase. (Cohrs, 5/15)
Kaiser Health News:
‘An Arm And A Leg’: Angst And Advice From A Health Insurance Insider
After hearing the story of Anna Davis Abel’s fight with her insurance company over testing related to COVID-19, we heard from a listener who has worked for a health insurance company for decades.“I am shocked,” she wrote. In Davis Abel’s position, “I would be screaming from the rooftops.” She added: “I have listened to all the episodes in this podcast, and there are times I come away feeling bad for working for the insurance company.” (Weissmann, 5/18)
