Keeping those departments running costs a bundle. But during the coronavirus pandemic, health insurance reimbursements for intensive care and emergency room visits are low, according to Dr. Carla Jackie Sampson, director of the health care management program at Temple University’s Fox School of Business.
“Bringing patients into the emergency room … you can’t ask them if they can afford to pay; they have the waiver now where they can use their insurance. They have it without having to use the co-pay. They’re using a lot of staff, they’re using a lot of equipment, but we’re not collecting any revenue to offset those expenses,” she said.
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Plus, factor in personal protective equipment (PPE) for health care workers, like gloves and masks, as well as medication to treat COVID-19 patients.
“I need to have cash to have these things available, but at the same time I don’t have any cash flow,” Sampson added.
She said hospitals make the bulk of their money from same-day surgeries and outpatient care, but both of those departments have been on hold because of the pandemic.
On Thursday, Pennsylvania Gov. Tom Wolf announced $324 million in funding for 31 hospitals across the state through the Hospital Emergency Loan Program, which provides short-term financial relief for hospitals dealing with the surge of COVID-19 patients.
Area hospitals granted funding include Wills Eye Hospital, Einstein Medical Center, Lower Bucks Hospital, Delaware County Memorial Hospital, and several hospitals within the University of Pennsylvania network.
“Our No. 1 priority is protecting the health and well-being of Pennsylvanians, and that priority extends from the home to the hospitals,” Wolf said in a statement. “By distributing this emergency funding to our commonwealth’s health care system, we are safeguarding our hospitals working hard to combat this virus.”