Tennessee Governor Bill Lee announced the Small and Rural Hospital Readiness Grant program, which will support facilities in rural communities across Tennessee as they grapple with the fallout of COVID-19.
Following is a statement from THA President and CEO Wendy Long, M.D., regarding the announcement.
“It’s no secret Tennessee’s rural hospitals have faced significant financial challenges for several years. As all hospitals confront the COVID-19 pandemic, these facilities have been hit particularly hard by steep reductions in already limited volume and revenue due to the delay of elective procedures in accordance with state and federal guidance.
“These unanticipated shortfalls threaten hospital viability and the ability to respond to community needs related to COVID-19 and ongoing health needs. Multiple federal grant and loan programs, such as those offered by the U.S. Department of Agriculture and Small Business Administration, already are proving useful to rural hospitals.
“Today’s announcement from Governor Lee presents a new option for these facilities as they work to establish plans of action that stabilize revenues and ensure continued operation through the current public health crisis. THA is grateful for the governor’s support and leadership in protecting rural hospitals. This program will bring much needed relief to many of our state’s community hospitals.”
Below is a statement from THA President and CEO Wendy Long, M.D., regarding the mandatory stay-at-home order issued by Governor Bill Lee.
“We deeply appreciate the work of the governor and his team during this difficult time in our state. It is a constantly evolving situation, which has required different levels of responses along the way.
“Hospitals are supportive of any action that encourages citizens to stay at home and limits social interaction, which is why we applaud Governor Lee for putting in place Executive Order 23.
“We know these types of decisions are not made lightly. However, all of us – including healthcare workers – are placed in harm’s way each time someone attends a large gathering, visits an elderly family member or widens their circle of personal interaction. These actions are confirmed as leading to increased exposure and risk for viral spread. This ultimately places additional burden on our increasingly strained healthcare system.
“Thank you, Governor Lee, for your leadership during this time of crisis and for taking this action, which requires Tennesseans to stay at home unless it is for essential activities like going to the grocery store, pharmacy or seeking care for a medical emergency.”
Below is a statement from THA President and CEO Wendy Long, M.D., regarding the extension of the mandatory stay at home order issued today by Governor Bill Lee.
“As Tennessee continues to see the benefits of social distancing and staying at home through a slower uptick in COVID-19 cases as opposed to more widespread outbreaks, hospitals are grateful for Governor Lee's continued leadership to mandate Tennesseans remain at home unless engaging in essential activities. The continuation of this order further ensures a flattened curve in Tennessee and greatly benefits our citizens, hospitals and healthcare workers as the fight against COVID-19 wages on.”
Tennessee hospitals are experiencing a negative financial impact of approximately $1 billion per month due to the pandemic, according to an analysis conducted by the Tennessee Hospital Association (THA).
As the COVID emergency continues, hospital revenues dramatically have dropped as both inpatient and outpatient service utilization have plummeted. At the same time, the costs for personal protective equipment (PPE) and other essential resources that are in short supply due to the crisis rapidly have increased.
“Tennessee hospitals have taken all of the appropriate steps to conserve resources and create capacity for COVID-19 patients,” said THA President and CEO Wendy Long, M.D. “These facilities have maintained expensive operations in preparation for and to serve COVID-19 patients while experiencing a dramatic drop in volume and services that typically comprise their core business. This creates a paradox of hospitals experiencing severe financial strain when their services are most needed.”
Hospitals are vital to the communities they serve and accept all patients from all payer groups, including Medicaid, Medicare, commercial insurance and the uninsured. The result of accepting many patients whose care is reimbursed below cost or not at all is that hospitals have thin operating margins. Hospitals carefully must balance their offered services in order to survive.
“In 2018, 71 hospitals in Tennessee had operating margins that were 2 percent or below, and 60 had zero or negative operating margins,” Dr. Long added. “It doesn’t take a pandemic to stress the system, and COVID-19 has made the situation much more difficult for many of our hospitals.”
Part of the statewide call to create hospital surge capacity and preserve PPE and other crucial supplies included the cancellation of elective medical procedures. Hospitals began postponing non-essential procedures even prior to Executive Order 15 and willingly complied with all directives in order to support the public health emergency. However, the unintended result is a staggering negative impact of approximately $1 billion per month to an industry that typically generates an average of $1.7 billion in monthly revenues.
This issue has been a top priority for THA, which has advocated for financial relief for hospitals during this crisis.
“Recent funding opportunities for hospitals that are being made available at the federal and state levels are very much appreciated lifelines to this vital industry,” Dr. Long said. “However, the reality is the impact is so massive that more assistance will be needed in order to ensure continuity of operations at hospitals and provide a necessary level of care. Now more than ever, Tennesseans need their hospitals to remain open and caring for their community.”
Below is a statement from THA President and CEO Wendy Long, M.D., regarding Governor Bill Lee’s announcement that elective procedures can resume on May 1.
“Hospitals and healthcare workers are incredibly grateful for the actions taken by our state leaders as well as efforts made by Tennesseans every day to slow the spread of the virus. Thank you to everyone who has done their part to help flatten the curve. Because of these actions, Tennessee has not experienced patient surges beyond what our hospitals can handle.
Part of the response included the temporary suspension of elective procedures and hospitals willingly complied with those directives in order to support the public health emergency.
With the suspension of elective procedures set to expire at the end of the week, THA has worked with Tennessee hospitals and the state’s Unified Command on a plan for resuming elective surgeries. The result has been the development of guidelines for a responsible, phased restart of elective procedures that allows hospitals to approach reentry in a manner that is most appropriate for their community and unique circumstances.”