Government-owned hospitals were shut out of the coronavirus rescue package’s loan program, putting some of the most financially vulnerable rural health care systems in danger of running out of money just as the virus hits the heartland.
Dozens of Republican and Democratic lawmakers are now pleading with the Trump administration to make an exception for rural health providers or for a legislative fix. Without one, they’re warning the industry could tumble into further financial turmoil. About one-third of rural hospitals — as well as over 15 percent of rural health clinics — are owned by local governments, but municipal owned entities are not allowed to receive small business loans.
City-owned Magnolia Regional Medical Center in Arkansas, where the virus is projected to peak later this month, is in dire financial straits — the rural hospital just furloughed 10 percent of its staff for two months, in what CEO Rex Jones called a “painful” reduction for the 49-bed facility.
This hole in the stimulus was apparently unintentional, multiple Republican and Democratic congressional aides said. Congress or possibly the Trump administration would have had to create an exception to let municipal-owned entities receive federal small business loans.
Education was never the sole focus of schools. The coronavirus pandemic has proved it
“Many of these hospitals are the sole provider for health needs in their community and their closure would leave wide areas of America with even greater access to care issues than ever before, which we simply cannot risk during this pandemic,” nine senators wrote in a letter to leadership.
For years, rural health providers have grappled with low patient volumes, staffing shortages and thin operating margins. Over 120 rural hospitals shuttered in the past decade, and another 1 in 4 were considered a high-risk for closure even before the pandemic hit. Now, the widespread cancellation of pricey elective surgeries, which make up the bulk of hospitals’ revenue, have made their finances all the more precarious.
Hospitals on Friday began receiving the first tranche of a separate $100 billion rescue fund dedicated to health care providers, but rural health providers are also competing with larger and more politically connected urban systems for funding. Rural health providers said this funding will help, but it won’t sustain them for very long.
“It was a desperately needed lifeline, but they’re still treading water out there,” said Maggie Elehwany, head of government affairs for the National Rural Health Association. “We need more assistance to keep them afloat and that makes it all the more important to let them access the SBA provisions.”
Source: Rural hospitals shut out of stimulus loans face financial crisis
Recent Comments