HAP estimates Pennsylvania hospitals suffer $10 billion dollar financial loss

Pennsylvania hospitals need financial help.

While many are busy spending money on treating patients with COVID-19, a majority of services have been temporarily cut to mitigate the virus.

The revenue loss could eventually spell trouble if state leaders don’t step in to help, according to at least one expert.

“I can’t predict the future, but looking back in time, we know that financial distress has led to many hospital closures in Pennsylvania. And we’ve never seen distress on this scale, ever, in the history of modern healthcare," said Andy Carter, president and CEO of the Hospital and Healthcare Association of Pennsylvania.

Carter is urging the General Assembly to prioritize federal dollars for Pennsylvania hospitals before more layoffs, and even closures, become reality.

“We’re hoping as the situation turns around, eventually, slowly, moved towards the future, many of these people will be brought back to full employment, but we really don’t know now,” Carter said.

Carter estimates Pennsylvania hospitals are taking a $10 billion dollar financial hit due to recent changes, including postponing or canceling thousands of procedures.

“Revenue that’s very important to cover the cost of emergency care and compensated care has largely gone away,” he said.

As the General Assembly sorts out the state budget over the coming weeks, legislators will likely debate how they’ll use federal emergency funding to stimulate the economy.

“The funding would be designed to offset these revenue losses, but would also help cover some of the costs that we’ve actually incurred: adding new ICU beds, paying overtime,” Carter said.

The Wolf Administration says it’s delivered on its promise to support hospitals throughout the crisis by accelerating $250 million dollars in payments, and creating the Hospital Emergency Loan Program.

“...the commonwealth has received $3.9 billion of its federal allocation of the Coronavirus Relief Fund. We are working with the legislature to determine the best way to allocate the funds,” a Wolf Administration spokesperson said.

While hospitals in rural area never saw a huge surge in cases, Carter says they still incurred major financial losses by canceling procedures.

“We want to make sure that these vulnerable healthcare providers in rural communities can make it through this and be there on the other side,” he said.