Becker's Hospital Review

12 CFO / FINANCE Hospitals file appeal in price disclosure suit By Ayla Ellison T he American Hospital Association has filed an appeal in a lawsuit chal- lenging a rule that requires hospitals to disclose rates they negotiate with insurers beginning in 2021. Under a final rule issued in November, hospitals are required to disclose the standard charges, including payer-specific negotiated rates, for all services be- ginning next year. The AHA, Association of American Medical Colleges, Children's Hospital As- sociation and the Federation of American Hospitals sued HHS in December, arguing the department lacks statutory authority to require public disclosure of individually negotiated rates between commercial insurers and hospitals. HHS argued its definition of standard charges is permissible under a 2010 law en- acted to lower the cost of healthcare coverage. Both sides filed motions for summary judgment, and Judge Carl Nichols with the U.S. District Court for the District of Columbia granted HHS' motion and denied the hospital groups' motion on June 23. The AHA announced June 27 that it has appealed the decision. "The proposal does nothing to help patients understand their out-of-pocket costs," AHA General Counsel Melinda Hatton said after the decision was issued. "It also imposes significant burdens on hospitals at a time when resources are stretched thin and need to be devoted to patient care. Hospitals and health sys- tems have consistently supported efforts to provide patients with information about the costs of their medical care. This is not the right way to achieve this important goal." n West Virginia hospital to close, lay off 340 employees By Ayla Ellison B luefield (W.Va.) Regional Medi- cal Center said June 1 it would end services by July 30, a move affecting 340 employees, according to TV station WVVA. As of July 13, when the article was published, the plan is still on track. The decision to shut down the hos- pital was based on several factors, including declining patient vol- ume and reimbursement rates and significant financial damage tied to the COVID-19 pandemic, the hospital said. Leaders from Princeton (W.Va.) Com- munity Hospital, which acquired Bluefield Regional last year, said they hope to offer some services on Blue- field Regional's campus. "PCH leadership is working with state and federal authorities to open a pro- vider-based emergency department on the BRMC campus," Princeton Community Hospital board of direc- tors said in a statement, according to TV station WOAY. "PCH is working through the details and regulations to open this department as soon as pos- sible, along with the necessary ancil- lary services to support its function, including lab and X-ray." Employees affected by Bluefield Re- gional's closure are encouraged to apply for open positions at Princeton Community Hospital, officials said, according to WOAY. Bluefield Mayor Ron Martin said he's working with Princeton Community Hospital leadership to develop plans for Bluefield Regional. "While we are saddened by this de- cision and by the loss of BRMC as a full-service hospital, we are commit- ted to working with PCH leadership and our state and federal elected officials to find a productive use for that facility to serve the healthcare needs of our region," Mr. Martin said, according to WOAY. n Cleveland Clinic cancels raises, faces $500M revenue shortfall By Ayla Ellison C leveland Clinic is implementing a cost-reduction plan to offset losses tied to the COVID-19 pandemic, according to cleveland.com. e health system's cost-cutting plan includes delaying some capital projects, restrict- ing travel and eliminating raises. "For the first time since the effects of the 2007-09 recession, the Cleveland Clinic has an- nounced that it will not give pay raises in 2020," the system said in a statement to cleveland. com. "Our priority is to preserve jobs and not reduce pay for our caregivers. is does not change or devalue the hard work of our caregivers and the commitment they have shown, especially during the COVID-19 pandemic." Cleveland Clinic ended the first quarter of this year with an operating loss of $39.9 million, compared to operating income of $36.2 million in the same period a year earlier. rough April, the first full month the health system limited services due to the pandemic, Cleveland Clinic had net patient service revenue shortfalls of more than $500 million, compared to what was planned, and incurred about $100 million in COVID-19 preparedness costs, according to financial documents. To help offset financial damage, Cleveland Clinic received $199 million in federal grants in April and May combined to cover expenses and lost revenues linked to the pandemic. e health system also applied for and received $849 million in Medicare advance payments, which must be repaid. n

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