CT hospitals lobby Congress for relief
Pleas for additional help come as losses climb amid new COVID pandemic surge
WASHINGTON — Like so many hospitals across the nation, COVID-19 has rammed Yale New Haven Health and its five hospitals onto shaky financial footing .
The health system closed the fiscal year ending Sept. 30 with an operating loss of about $120 million, CEO Marna Borgstrom said
Tuesday, even after the health system received over $280 million in federal coronavirus aid, U.S. Department of Health and Human Services records show.
Connecticut hospitals and health care providers have received roughly $1 billion in federal coronavirus direct payments from the U.S. Department of Health and Human Services, but as the pandemic continues to surge, they’re now advocating for more relief.
“While the summer’s relative respite from COVID-19 volume allowed hospitals to reopen ambulatory services, their financial position remains uncertain, as we move into a second surge,” said Jill McDonald Halsey, vice president of Communications at the Connecticut Hospital Association. “Given this, we continue to advocate to both federal and state officials for the financial relief necessary to assist with not only the losses associated with the medical response to the pandemic, but also the public health role we have played during these eight months and going forward.”
The American Hospital Association forcasted that collectively U.S. hospitals will experience total losses of at least $323.1 billion in 2020, not including the impact of currently increasing coronavirus case rates.
Hospitals have dealt with spiking costs on items like
gloves, masks, face shields, sanitizers and test kits. But for many, the biggest hit to their bottom lines was the major reduction in the number of patient procedures and surgeries in spring and early summer, when the state was in lock-down and hospitals curbed elective procedures to focus on coronavirus.
Patient volumes have bounced back in many places, but not always to normal levels and as case loads continue to climb across the country, it's unclear whether those elective procedures will dry up again.
“We lost money in the month of October,” said Borgstrom. “I suspect we’ll lose money in the month of November.”
In another logistical and financial challenge, as coronavirus surges, hospitals in at least 25 states are critically short of nurses, doctors and other staff, Stat News reported. Unlike the spring wave, swamped hospitals can't borrow staff from other parts of the country because nearly the whole nation is seeing climbing case loads at the same time.
Hourly rates for traveling nurse contracts have increased almost three-fold, said Borgstrom. She described staffing as her biggest budgetary worry.
Connecticut’s hospitals, which already had financial struggles before the pandemic hit, have already received a significant boost. They are in the process of negotiating additional financial relief from the state of Connecticut, McDonald Halsey said.
“The Governor has continued to support hospitals from the start of the pandemic by providing needed personal protective equipment and joining efforts like encouraging residents to not delay care,” said Lora Rae Anderson, director of communications for the chief operating officer at the State of Connecticut. “Discussions about relief remain on-going — and we're grateful that our hospitals have been incredibly resilient partners during this pandemic — serving our residents in remarkable, and innovative ways."
The federal government has distributed $70 billion to hospitals nationwide, according to AHA, with more funding on the way in a new round of payments due to be made soon. The U.S. Department of Health and Human Services has also given billions in coronavirus relief to other health care providers including clinics, nursing homes, dentists, chiropractors and more.
Hospitals are lobbying for more help as Congress tries to break through months of stalemate to deliver another
COVID-19 relief package. From Jan. 1 through Sept.
30, the American Hospital Association spent $18 million on lobbying Congress, the fourth most of any organization, according to Open Secrets.
In addition to more direct grants to hospitals and health care providers, the American Hospital Association is looking for full loan forgiveness of Medicare Accelerated/Advance payments, essentially turning a
loan that providers could get earlier in the pandemic into another grant.
AHA is also seeking to eliminate cuts to Medicaid and Medicare, secure more support for health care workers, including a compensation fund for workers and child care, education and transportation benefits.
Finally, they want federal liability protections for
hospitals and health professionals during the pandemic. Hospitals are more likely to find strong allies from Republicans on this liability request, since Senate Majority Leader Mitch McConnell, R-Ky., has made such protections for businesses his "red line" in coronavirus negotiations.
"We need to make sure the provision is crafted
properly so an employer who egregiously forces his or her workers to do bad things isn't let off the hook, but we're looking at a way to solve that problem," said Senate Minority Leader Charles E. Schumer, D-N.Y., in an interview this week.
Schumer confirmed this week that Democrats will continue to push for the hospital relief they included in the Heroes Act, passed by the House in May. It includes a good chunk of hospitals' wish list, such as a fresh $100 billion for the U.S. Department of Health and Human Services to distribute to hospitals and health care providers to reimburse them for COVID-19 expenses and losses and hazard pay for health care workers. It does not wave loan repayment for Medicare Accelerated payments, but it does extend the repayment window.
A spokesman for the chair of the Senate Health, Education, Labor and Pensions Committee did not respond to a press inquiry
about Republicans' latest plans for hospital relief. A Republican proposal issued by McConnell in July would give HHS an additional $25 billion to give out to hospitals and health providers.
The American Hospital Association is actively lobbying Congress to pass a deal that includes more hospital aid during the last two months of President Donald Trump's term. President and CEO Rick Pollack also expressed optimism this month that a President Joe Biden will work productively with hospitals.
"What we have heard President-elect Biden say repeatedly is he in favor of a robust and rapid deployment of additional federal relief funds to support health care and other economic sectors that have been impaired as a result of the pandemic,” Borgstrom said. “They are intent on getting more relief money out.”