Becker's ASC Review

84 HEALTHCARE NEWS 'This is going to be the death blow': Coronavirus threatens to shut hundreds of rural hospitals By Alia Paavola T he coronavirus pandemic may close hundreds of rural hospi- tals across the U.S., the National Rural Health Association and hospital CEOs are warning, according to Kaiser Health News. e financial crisis comes as hospitals across the U.S. are canceling elective procedures to free up bed space and resources for COVID-19 patients. Many hospitals rely on these nonurgent procedures to boost their profit margins, according to the report. In addition to canceling nonurgent procedures, hospitals are also being forced to pay higher prices for personal protective gear that is in short supply. "If we're not able to address the short-term cash needs of rural hos- pitals, we're going to see hundreds of rural hospitals close before this crisis ends," Alan Morgan, head of the National Rural Health Asso- ciation, which represents 21,000 healthcare providers and hospitals, told Kaiser Health News. "is is not hyperbole." Even before COVID-19, rural hospitals struggled to stay afloat due to rising financial pressures, including lower Medicare reimbursements and a shrinking patient population, according to the report. As a result, over the last decade more than 120 rural hospitals have closed. Rural hospitals have largely survived due to elective surgeries, physi- cal therapy and lab tests to boost their thin margins. Yet more than half of rural hospitals operate at a deficit, according to the report, which cited Chicago-based Chartis Center for Rural Health. "is virus, and what it is causing for these hospitals, is the perfect storm that will close these hospitals at a time this country critically needs them," Robin Rau, CEO of Miller County Hospital in Colquitt, Ga., told Kaiser Health News. "is is going to be the death blow to them." Ms. Rau recently eliminated nonurgent medical services at Miller County Hospital. She estimates this will cut the hospital's revenue in half. Other CEOs warned they are expecting a similar financial hit from eliminating nonurgent procedures. e CEOs are warning that this means they could miss payroll. In response to the worsening financial crisis for hospitals, the American Hospital Association requested $100 billion in federal aid for all hospitals to offset coronavirus costs. In its request to Congress, the association said rural hospitals would be unable to weather a prolonged period of this financial burden. n Top, bottom 5 states for physician pay By Rachel Popa M any of the best states for physician pay are in the South and Midwest, according to the 2020 best and worst states for physicians list from personal finance website WalletHub. Top five states by average pay, adjusted for cost of living: 1. Mississippi 2. South Dakota 3. Indiana 4. Wisconsin 5. Iowa Bottom five states & the District of Columbia: 47. Massachusetts 48. Maryland 49. California 50. New York 51. District of Columbia n Kaiser cancels $900M headquarters project By Ayla Ellison K aiser Permanente has scrapped plans to build a new $900 million office tower in Oakland, Ca- lif., according to the San Francisco Chronicle. The healthcare giant had planned to move more than 7,000 employees from seven offices into a new 1.6 million-square-foot, 29-story tower. Now that the plan for a new headquarters office in Oakland is no longer happening, Kaiser will stay in its existing East Bay of- fices, according to the report. Kaiser reexamined the feasibility of the project due to delays and increasing costs of the tower, the system told the San Francisco Chronicle. Kaiser said the decision to cancel the project was not related to the COVID-19 pandemic. n

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