Becker's Hospital Review

14 CFO / FINANCE 4 California health systems refused or delayed COVID-19 transfers due to patients' insurance status: WSJ By Molly Gamble A t least four California health systems declined or delayed the receipt of transferred COVID-19 patients due in part to their health insurance or lack there- of, according to a Wall Street Journal report based on internal emails from California's Emergency Medical Services Authority. e WSJ obtained the documents and emails through a public-records request. e com- munications between local and state gov- ernment, hospital, and emergency-response officials identify four hospital systems as re- fusing or delaying receiving transfer patients in May, but the WSJ notes that "denying hos- pitals weren't named or quantified, so the total could be higher." e four systems that were identified are Cedars-Sinai in Los An- geles, Sharp HealthCare in San Diego, Prime Healthcare in Ontario, Calif., and Loma Lin- da (Calif.) University Health. e May 26 transfers in question came from two hospitals in Imperial County that were crowded with COVID-19 patients. Although the WSJ reported that emails show state offi- cials called and emailed hospitals telling them that the state would cover treatment costs of uninsured patients, hospitals either refused or held up transfers based on patients being uninsured, on Medicaid or for other reasons related to reimbursement. In one case, Loma Linda University Health sought assurance from transfer coordinators that it would be paid rates at 130 percent of Medicare prices for two uninsured patients, according to the WSJ's obtained emails. e system said in a statement that it followed stan- dard industry practice and stopped demand- ing the payments aer it learned how crowded the hospitals in Imperial County were. In another case, a 56-year-old patient who tested positive for COVID-19 needed to be transferred from El Centro (Calif.) Regional Medical Center for supplemental oxygen due to the hospital's patient volumes. Emails show Huntington Beach Hospital refused to accept the patient until her insurer preapproved payments, the WSJ reported. e patient was instead taken to a temporary alternative care site at a local community college. Prime Healthcare, which owns Huntington Beach Hospital, told WSJ the patients for which El Centro sought transfers had been stabilized at El Centro and therefore no lon- ger fell under the federal Emergency Medical Treatment and Labor Act. e WSJ reported that El Centro physicians and administrators said interactions like this le patients waiting up to four days for transfers and forced some to fly hundreds of miles for a hospital bed, leaving some pa- tients with lung damage and health compli- cations as a result. Each system identified in the report as de- laying or refusing COVID-19 patients from Imperial County shared statements with the WSJ in response to its reporting on the inter- nal emails. ey are listed below, in addition to Loma Linda and Prime's responses, which were previously mentioned in this brief: • A spokesperson for Cedars-Sinai said the system complied with the law and standard practices when it declined transfers, noting that patients in need of transfer on May 26 didn't require specialized care available at its hospital and that it was seeking to reserve beds for an anticipated local surge. • A spokesperson for Sharp said the sys- tem does not limit transfers based on in- surance, and did not do so on May 26, noting a transfer request that day from El Centro was later canceled and the patient was transferred elsewhere. n CommonSpirit extends timeline for $2B cost savings plan by 12 months By Alia Paavola C hicago-based CommonSpirit Health's plan to cut $2 billion in expenses will likely take five years instead of the planned four, the health system confirmed Oct. 8 to Becker's Hospital Review. CommonSpirit initially announced the $2 billion cost savings goal in June 2019. The system said it would drive savings from merger-related and performance improvement synergies. As of February, CommonSpirit has achieved $350 million in cost savings and performance improvements, the sys- tem said. CommonSpirit said it remains committed to its cost sav- ings goal, but due to the pandemic, reaching that goal likely will take 12 more months than planned. n Saint Luke's Health System to close 2 hospitals By Alia Paavola K ansas City, Mo.-based Saint Luke's Health System plans to close two community hospitals Dec. 30. Saint Luke's Community Hospitals at 75th Street and 159th Street, both in Overland Park, Kan., are closing. The system said it is closing the two locations to streamline services. They both offer inpatient and emergency care. "Two of our locations have seen lower patient volumes since opening, and as we look at ways to provide care while operating as efficiently as possible during this chal- lenging time, we have made the decision to close these two locations," said Bobby Olm-Shipman, Saint Luke's south and east region CEO. Employees at the two closing locations can apply for open positions in the health system. n

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