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Morning Briefing

Summaries of health policy coverage from major news organizations

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Friday, Apr 24 2020

Full Issue

Hospitals Hit With One-Two Financial Punch Of High COVID-19 Costs And Canceled Procedures

"I think it's fair to say that hospitals are facing perhaps the greatest challenge that they have ever faced in their history," says Rick Pollack, president and CEO of the American Hospital Association. Federal aid is being distributed to help needy health system, but some wonder if it will be enough. Meanwhile, some hospitals start inching toward resuming non-coronavirus procedures.

The coronavirus outbreak has thrown hospital systems throughout the U.S. into crisis — both medical and financial. The cost of treating coronavirus patients, combined with the loss of revenue from canceling elective procedures, has left many hospitals in desperate financial straits. Some estimates suggest hospitals are losing $50 billion a month, says Rick Pollack, president and CEO of the American Hospital Association. (Chang, 4/23)

The COVID-19 outbreak may be as severe as the 1918 influenza pandemic that killed an estimated 675,000 people in the U.S., according to a report by consulting firm Matrix Global Advisors. MGA predicts that 12.3 to 26.3 million people will be hospitalized in the U.S. because of the virus, placing extraordinary demand on the healthcare system. (Brady, 4/23)

As the novel coronavirus leaves a path of human devastation in its wake, the financial future of some of the nation's largest health care systems is also now in jeopardy -- leading many of these institutions to let go of health care workers at a time when patients need them most. While private practices and smaller health systems were some of the first to be affected, as time has stretched on, some of the country's largest health systems have shown that they too are vulnerable. (Anoruo and Kagan, 4/24)

The formula HHS will use to distribute $20 billion in COVID-19 relief grants is unclear about how much money providers will get and if enough money will be left after the first direct deposits go out Friday. HHS Secretary Alex Azar said Wednesday that the department will soon pay out an additional $20 billion from the Coronavirus Aid, Relief, and Economic Security Act's provider relief fund to top up providers that were disadvantaged in the department's first $30 billion round of grant funds based on Medicare fee-for-service reimbursement. (Cohrs, 4/23)

At least one Bay Area hospital is already performing and scheduling nonemergency surgeries — postponed during California’s shelter-in-place order — as the state takes the first tentative steps toward reopening. Even before Gov. Gavin Newsom announced Wednesday that hospitals could begin to schedule some elective surgeries for the first time in more than a month, UCSF has been getting such surgeries on the calendar for the past two weeks, including replacing kidneys and conducting certain heart surgeries and cancer procedures — all of which have been deemed nonemergency during the pandemic. (Moench, 4/23)

Ohio hospitals and outpatient clinics plan to restart some procedures halted during the coronavirus pandemic, but that will only happen if COVID-19 testing and personal protective equipment are not scarce. On March 17, Ohio Department of Health Director Dr. Amy Acton issued an order halting most elective surgeries and procedures. The order allowed procedures to continue under a few exceptions such as if skipping them would "rapidly" worsen the condition (Borchardt, 4/23)

Surreal is as good a word as any to describe how, even in the midst of a global pandemic, routine medical care — preventive checkups, pediatric visits, births, even the occasional trauma surgery — continues in a way that’s surprising to both doctors and patients. (Przybys, 4/23)

Eight nurses at the lone hospital in the rural Oklahoma town of Stigler now double as the cleaning crew. They stabilize patients with life-threatening conditions, mop floors and scrub toilets. The nurses, along with an office manager and a part-time maintenance worker, are the only remaining employees at the Haskell County Community Hospital, which two years ago had a staff of 68 and provided some of the highest-paying jobs in the southeastern Oklahoma town. (Bailey, 4/23)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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