Becker's Hospital Review

April 2021 Issue of Becker's Hospital Review

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14 CFO / FINANCE Hospitals see negative margins to start 2021: Kaufman Hall report By Alia Paavola H ospital margins, patient volume and outpatient revenue continue to lag when compared to prior year perfor- mance, according to a report published Feb. 22 from healthcare consulting firm Kaufman Hall. In January, the median hospital operating mar- gin was minus 0.6 percent, not including aid from the Coronavirus Aid, Relief and Econom- ic Security Act. Even with the funding, hospital margins sank to minus 0.1 percent in January. In addition to seeing median operating margin declines in January, hospitals' median margin on operating earnings before interest, taxes, depreciation and amortization was 4 percent without funding from the CARES Act and 4.8 percent with CARES Act funding. Overall in January, the median operating mar- gin fell 46.1 percent for hospitals without the federal funding, and operating EBITDA mar- gin was down 34.1 percent when compared to January 2020. Outpatient revenue fell 10.4 percent in January compared to January 2020, which also pushed gross operating revenue down 4.8 percent, not including CARES Act funding, according to the report. But inpatient revenue grew year over year by 1.3 percent. Hospital volume also fell year over year for most metrics, Kaufman Hall said. Specifically, adjust- ed discharges fell 17.6 percent, adjusted patient days declined 8.3 percent and operating room minutes fell 16.6 percent in January compared to January 2020. Emergency department visits declined 24.7 percent, and inpatient volume fell 2.3 percent, but hospitals saw average length of stay increase due to higher-acuity patients. "January marked a potential turning point in the pandemic, as we saw federal coronavirus statistics start to wane later in the month," said Jim Blake, a managing director at Kaufman Hall. "While declining COVID-19 cases and hospitalizations are a very welcome sign, the pandemic continues to create a challenging sit- uation for hospitals and health systems." n Colorado medical center apologizes after canceling vaccine appointment over unpaid bill By Ayla Ellison B oulder (Colo.) Medical Center apologized in February after canceling a man's appointment for the COVID-19 vaccine because he owed the medical center $243, according to 9News. Michael Rogan, a 72-year-old cancer patient, said it took him several weeks to secure a vaccine appointment. He got a call from BMC Feb. 2 and sched- uled his first and second doses of the COVID-19 vaccine, but the next day he received a second call from someone else at the medical center saying he couldn't get the vaccine until he paid his outstanding bill, according to the report. "I know I owe them money, but I don't think it should be tied to [the vaccine]," Mr. Rogan told 9News. After being informed of the situation, the medical center's CEO called Mr. Rogan. The medical center apologized for the error and scheduled a vac- cine appointment for him, according to the report. "The Governor had been clear that there should be no barrier to receiving the vaccine and the state has been very clear with providers about provid- ing the vaccine to Coloradans in the most efficient way possible," Colorado Gov. Jared Polis' office said in a statement to 9News. "We are working with providers across Colorado to remove barriers to accessing this life-saving and crisis-ending vaccine." Information on the Colorado Department of Public Health & Environment website says cost will not be a barrier to getting the vaccine, and providers aren't allowed to turn away an individual because of their current medical coverage status. n UHS buys 32 acres in Florida for medical campus By Alia Paavola K ing of Prussia, Pa.-based Universal Health Services has purchased 32 acres of land in Palm Beach Gardens, Fla., for a medical campus, ac- cording to the South Florida Business Journal. The for-profit hospital operator paid $32.7 million for the property, accord- ing to the Feb. 2 report. UHS is seeking approval to build a 270-bed, 365,000-square-foot hospi- tal, a four-story medical office building and 1,019 parking spaces on the medical campus. The hospital would be the second acute care facility in South Florida for UHS, which already owns Wellington (Fla.) Regional Medical Center. n

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