by Dick Hall-Sizemore
The Washington Post has reported that hospitals are struggling with their cash flow due to the coronoavirus crisis. As a result, they are asking Congress for emergency aid. The American Hospital Association is calling for $100 billion and the Federation of American Hospitals, the trade group for for-profit hospitals asked for $225 billion.
At the urging of national and health officials, hospitals are cancelling elective procedures. Those services bring in the revenue to cover a large portion of their overall operating costs. As a result, they are running low on cash. Some are projecting they will be able to meet their payrolls only for a few weeks.
To add to these problems, vendors are requiring payment upon delivery for supplies and equipment. Some are saying they do not have the immediate cash on hand to buy the additional beds that political leaders, such as Governor Cuomo, are directing them to do. That could also be a problem in purchasing the additional ventilators that many predict will be needed.
In Virginia, the reaction of hospitals has been mixed. VCU Health, UVa Health and Bon Secours have cancelled or postponed elective procedures. HCA Healthcare and Sentara have not changed their surgical schedules. Based on its latest COVID-19 advisory, it appears that INOVA in Northern Virginia has not changed its elective procedures schedule. Virginia Hospital Center in Arlington was one of those hospitals mentioned in a national article criticizing some hospitals for continuing to provide elective procedures. Virginia Healthcare Emergency Management Program, a partnership between the Department of Health and the Virginia Hospital and Healthcare Association, issued a statement complaining about the lack of clear national definitions and opposing “a sweeping policy” applicable to all hospitals.
