Hospitals press for $100 billion in Congressional stimulus package

Some hospitals are running low on cash after canceling many elective procedures to devote more resources to the coronavirus outbreak.

Executives from three hospitals across the country detailed their dire fiscal conditions on a conference call Saturday hosted by the American Hospital Association. This may force some to close their doors just as the need for care skyrockets amid the pandemic.

The lobbying group, along with the American Medical Association and the American Nurses Association, are pressing congressional lawmakers to provide them with $100 billion in the stimulus plan that’s now being hammered out on Capitol Hill.

The emergency fund would help cover lost revenue from suspending many elective procedures — which can be lucrative for hospitals — and pay for additional staffing, supplies, facility expansions and other costs related to the coronavirus pandemic, the industry groups say.

Hospitals depend on elective procedures — which also include life-saving surgeries for cardiac or cancer patients, among other interventions — to bring in much-needed revenue, the executives said.

At Three Rivers and North Valley hospitals in Washington state, patients are avoiding the hospital amid state mandates on social distancing and elective procedures, said CEO J. Scott Graham. It expects to exhaust its ability to make payroll in a month or so, and its bank is not committing to extending its credit limit.

To preserve cash, the hospital system has stopped paying its vendors, but all its personal protective equipment and cleaning supplies are on back order anyway, Graham said. While it hasn’t seen any coronavirus patients yet, it is preparing for an influx.

“We know we need to ramp up, but at the same time we are concerned we will not be able to be around because of the financial hit that we’ve taken by the time the surge hits us,” Graham said.

The executives said that it’s virtually impossible to find personal protective equipment on the private market.

But even if they could, many vendors are demanding to be paid immediately, said Kevin Donovan, CEO of LRGHealthcare, a two-hospital system in central New Hampshire, which is treating more than 10 coronavirus patients.

“We are unable to pay our bills, and they are telling us they will not ship us necessary supplies until we pay them cash on delivery,” Donovan said. “We are unable to do that.”

Also, hospitals need to add beds and staff to address the outbreak, said LaRay Brown, CEO of One Brooklyn Health System in New York, which is also facing a cash crunch. The hospital has had to buy or lease tents and equipment to do coronavirus screenings.

Now, its supply costs are increasing 20% to 25%, said Brown, and the nursing agencies One Brooklyn contracts with recently raised rates by 15% to 20%.

“Just last night, our CFO said, ‘How are we going to pay people? More money is going out than coming in,'” Brown said. “But our reality is that we have to respond to the needs of our patients and the needs of our community.”

Meanwhile, the Federation of American Hospitals, which represents investor-owned hospitals, has requested $225 billion from Congress.

Lawmakers are working through the weekend to hammer out the details of the stimulus package, the cost of which could top $2 trillion.

President Donald Trump told reporters Saturday at an afternoon briefing on coronavirus that “we are getting close” to reaching a deal on a proposal.

Senate Majority Leader Mitch McConnell has set a deadline for drafting the legislative text by Saturday afternoon and also set up a procedural vote to move forward on the legislation for Sunday, laying the groundwork for a possible final vote to pass a deal by Monday.

Senate Democratic Minority Leader Chuck Schumer said Friday he was hopeful a global agreement could be reached on the package by Saturday, acknowledging it’s “a big, complicated, huge bill.”