Hospitals start bleeding out
Friday, Apr 17, 2020 - Posted by Rich Miller
* Lisa Schencker and David Heinzmann at the Tribune…
Though Illinois hospitals are, in many ways, busier than ever as they care for patients with the new coronavirus, they’re also taking a financial beating that’s affecting their workers and raising questions about how the institutions will recover once the worst of the pandemic has passed.
The Illinois Health and Hospital Association estimates that hospitals statewide could now be losing about $1.4 billion a month. That’s the money hospitals are missing out on because of canceled elective surgeries and fewer visits by other patients, many of whom may be avoiding medical care for fear of catching the virus. […]
In Illinois, hospitals are trying a number of tactics to stanch the bleeding, including reaching into their reserves, halting improvement projects and furloughing workers — sometimes with pay and sometimes without. Hospitals are sidelining workers because, without elective surgeries and with declines in outpatient care, there may not be enough work for them, at the moment. They also want as few extra people in hospitals as possible, to help slow the spread of the coronavirus. […]
Illinois hospitals also continue to contend with the same financial challenges they faced before the coronavirus. Before the pandemic, about 40% of the state’s hospitals were operating in the red or close to it, according to the Illinois Health and Hospital Association.
There is a lot more in that story, so make sure to click here and read it.
* Related…
* Federal Rescue Package Comes Up Short For B-N Health Care Systems
* Illinois Health System Hacked Amid Coronavirus Response
- Pot calling kettle - Friday, Apr 17, 20 @ 9:51 am:
More on this topic: https://www.npr.org/2020/04/14/834628512/rural-hospitals-the-waiting-game
- Healthcare Economics - Friday, Apr 17, 20 @ 9:57 am:
There are two ways of interpreting the data:
(1) hospitals are performing their vital public service and need to be supported by the public sector accordingly
(2) hospital cost structures have been out of line with public good for some time, and hospitals have built their fortunes (yes, fortunes) on the backs of price inflation and wage suppression (via insurance premium and deductible increases) for too long.
Both of these facts can, indeed, be true. Hospitals can be in need of a bailout from governments for performing an unprecedented public service to save lives. Hospitals can also be in need of dramatic reforms to ensure that more resources are dedicated to public health and fewer resources are dedicated to real estate development, proton beam therapies, and “centers of excellence” that do not statistically improve health outcomes.
My guess, though, is we’ll get one and not the other.
- efudd - Friday, Apr 17, 20 @ 9:58 am:
Quoram Health, which owns Union county hospital, Heartland Regional in Marion, among others, has just filed Chapter 11.
- illinifan - Friday, Apr 17, 20 @ 10:02 am:
Bottom line, it may be time to change the funding structure for hospitals to include more public funding and not depend on insurance reimbursement as the primary source of funding.
- EmptyMailbox - Friday, Apr 17, 20 @ 10:09 am:
Even in the best of times, most hospitals are operating at a 3% or less margin, and have only a few months (if that) operating cash on hand, not what I would call a fortune. Now if you want to discuss why a common medical procedure costs as much as a nice car, we may be on to something.
- Hamlet's Ghost - Friday, Apr 17, 20 @ 10:13 am:
What percentage of hospitalized COVID patients have sufficient insurance to pay for their care?
I would speculate it’s a low percentage.
- Anonish - Friday, Apr 17, 20 @ 10:15 am:
The furloughs at Loyola, owned by Trinity Health out of Michigan, are for 3 months and the pay cuts are starting at 10% reductions also for 3 months.
I suspect all those numbers to increase.
- Hamlet's Ghost - Friday, Apr 17, 20 @ 10:19 am:
Financially solvent hospitals are probably an key milestone to “re-opening” the state.
- A Jack - Friday, Apr 17, 20 @ 10:32 am:
I suspect dentists are hurting too.
- truthteller - Friday, Apr 17, 20 @ 10:50 am:
The obvious solution is a universal healthcare where hospitals sole purpose the health and welfare of people and not corporate profits. I think the outcome of Novembers election and sweeping democratic victories every where will make this happen.
- Illdoc - Friday, Apr 17, 20 @ 11:11 am:
It’s been very hard on dentists. Can only see emergencies in the office. Have had to furlough most if staff. When dentists can see non emergency patients again there will be a need to limit the number of patients in the waiting room, additional PPE and infection control guidelines. These are still be developed by the CDC
- Anon221 - Friday, Apr 17, 20 @ 11:26 am:
There are other costs to COVID-19 that will also be coming. Instead of furloughing staff, maybe hospitals need to start considering training those staff they consider “excess” to provide post COVID-19 care.
https://www.politico.com/news/2020/04/15/dialysis-kidney-coronavirus-188840
- TinyDancer(FKASue) - Friday, Apr 17, 20 @ 11:42 am:
When this is all over, it will be interesting to examine the data on patient outcomes for cancelled surgeries/procedures, etc. Did patients fare better or worse without that stent, by-pass, spinal surgery, knee replacement, CT scan, MRI, etc.
How much of this is over-treatment and how many patients improved without intervention?
- Anonish - Friday, Apr 17, 20 @ 11:42 am:
Hamlet, the problem is that hospitals need the surgeries, especially elective, and outpatient procedures for a large part of their income.
- Anonish - Friday, Apr 17, 20 @ 11:45 am:
TinyDancer, we will need to be careful because some of those patients will get worse and their surgeries may end up being more extensive.
- TinyDancer(FKASue) - Friday, Apr 17, 20 @ 11:49 am:
Anonish, This is by decree - not design. I’m just noting that this decree will produce interesting data.
- Busy Not 1 - Friday, Apr 17, 20 @ 11:52 am:
One thing about all these furloughs, Illinois is an At Will State, staff may/may not be brought back, if staff have been there for years, they are being paid premium, new staff is less expensive, and have the latest and greatest education to look at delivery of services much differently; such as telehealth, and home visits, much more to be seen… many hospitals have been working on new and different ways to survive…..not just a place on every corner anymore, that drives operational costs upward.
- Hamlet's Ghost - Friday, Apr 17, 20 @ 12:06 pm:
== Hamlet, the problem is that hospitals need the surgeries, especially elective, and outpatient procedures for a large part of their income. ==
Well, yes. But even if “stay at home” is eased how many people will want to have elective surgery until the virus is contained?
An especially if we ease “stay at home” without adequate hospital capacity.
- Hamlet's Ghost - Friday, Apr 17, 20 @ 12:15 pm:
@Anonish
My point is that we need financially solvent hospitals as a requirement to safely ease “stay at home” orders.
If you are saying we need to ease “stay at home” orders to have financial solvent hospitals then I say you are blaming “stay at home” orders for what’s really being caused by the virus.
And if we do need elective surgeries to fund vital services during a pandemic then we are in big trouble.
- 40,000 ft - Friday, Apr 17, 20 @ 12:16 pm:
Healthcare Economics (9:57 am),
Are Big Ins cos, like UH and BCBS, etc., reaping monster gains due to the continuation of a premium windfall, and no corresponding typical expenses due to everyone sheltering in their homes?
Hospitals bleed while insurance cos hoard premiums?
- XonXoff - Friday, Apr 17, 20 @ 12:19 pm:
– Illinois Health System Hacked Amid Coronavirus Response –
There’s a special place in Hell for someone who collects $300k for ransomware on a hospital network, during a pandemic. I hope someone with the right chops makes it their mission to exhaust every vector to find and prosecute the perpetrator.
- jim - Friday, Apr 17, 20 @ 12:48 pm:
maybe they should re-open for regular business since they are not being inundated with CV patients