PAUL – The Minnesota Hospital Association (MHA) in a letter April 9 asked Minnesota’s
congressional delegation to help secure additional emergency federal funding
for Minnesota’s hospitals and health systems that are losing an estimated
$2.9 billion over the next 90 days while responding to the COVID-19 public
health care providers have postponed elective surgeries and reduced in-person
visits to clinics in order to conserve
personal protective equipment (PPE) for front-line caregivers and to reduce potential
exposure for both health care workers and patients,” said Dr. Rahul Koranne,
president and CEO, MHA. “That was the right thing to do, but the reduction in
revenues and significant costs to acquire an
unprecedented amount of supplies and equipment, build out temporary spaces
for a surge of patients and ensure we will have the right workforce in place
to care for COVID-19 patients – particularly in intensive care – are having a
significant financial impact on health systems throughout Minnesota, large
and small, metro and rural.”
Koranne said significant federal funding is
required to ensure Minnesota health care providers are able to provide
necessary services to get hospitals and health systems through this pandemic
and to ensure continued viability and access to health care throughout the
state once the pandemic is resolved.
worked with accounting firm CliftonLarsonAllen to model the near-term impact
of this pandemic.
hospitals and health systems are collectively losing $31 million in revenue
per day as a result of reductions in patient volumes. This represents a 55%
reduction of patient revenues, on average. Smaller hospitals are reporting
closer to 70% revenue reductions. This loss is expected to remain consistent
over at least the next 90 days for an impact of $2.8 billion.
members as a whole are spending approximately $13.3 million per day to
purchase equipment and supplies and to make physical and technological
upgrades that will allow them to handle a surge of COVID-19 patients. Over 90
days, these additional expenses will total $1.2 billion.
analysis also accounted for offsetting revenues as COVID-19 cases increase.
With an estimated shortfall from reimbursements, hospitals and health systems
will experience over $120 million in uncovered patient-related costs.
total, this will result in approximately a $2.9 billion cash flow loss over
the next 90 days.
Minnesota Hospital Association represents Minnesota’s hospitals and health
systems, which provide quality care for their patients and meet the needs of
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