Hospitals face unprecedented challenges amid COVID-19 pandemic
PHILADELPHIA - It’s now clear that not only does COVID-19 “wreck havoc” on the human body but it “pounds” the bottom line of hospitals. According to published reports, the Einstein Healthcare Network with hospitals in North Philly and Montgomery County plans to furlough workers.
"These hospitals will need financial support maybe from the federal government. We need to keep these hospitals afloat," Philadelphia Health Commissioner Dr. Thomas Farley said.
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An Einstein Spokesperson tells FOX 29, “We are currently in the middle of the COVID-19 battle, while being forced to explore every avenue to secure our own long term financial stability.”
Not far from Einstein on North Broad stands the home of the Temple University Health System. Temple reports it expects to lose a startling $40 million per month due to treatment of COVID-19 patients and the postponement of elective procedures.
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"In anticipation of the health care surge hospitals cancelled elective surgeries and had a long period of time when the number of patients were far lower than usual, which means they got a lot less revenue than they normally would," Farley said.
Earlier this month, the Pa. Department of Health wrote, "Hospitals must implement their plan to postpone or cancel elective admissions, surgeries and procedures."
In light of the spreading virus, the Jefferson Health System is testing for COVID-19 in Center City. It expects revenue losses of as high as $120 million per month, but says it’s further strengthening its fiscal health to continue the fight of COVID-19.
"I’m more concerned over the long term than the immediate term. Hospitals will need financial support to stay open," Farley said.
The full statement from Einstein can be found below:
"The COVID-19 pandemic has created unprecedented challenges to hospitals and health systems throughout the country especially essential, safety-net hospitals like Einstein, who are in the epicenter of this region's outbreak. Adapting to these clinical challenges comes with an added financial burden. Mission driven institutions like Einstein, who provide care for the most vulnerable communities are heavily reliant on Medicare/Medicaid reimbursements and simply don't have the financial reserves of those organizations who care for a largely commercially insured patient base.We are currently in the middle of the COVID-19 battle, while being forced to explore every avenue to secure our own long term financial stability. We are working closely everyday with state and federal officials to ensure we can recover from the staggering financial impact of this pandemic. Their support is paramount in our effort to achieve financial stability and to continue providing care to the communities who need it most."
Temple University Health System released the following statement:
"We are estimating a $40 million per month loss across Temple University Health System due to costs associated with delivering care to COVID-19 patients, as well as lost revenue from postponed elective cases. We are controlling costs where possible."
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