Issue link: https://beckershealthcare.uberflip.com/i/1372822
19 CFO / FINANCE AHA head: Pandemic aid isn't enriching most hospitals; they are struggling By Alia Paavola A n April 1 article published in e Washington Post suggesting COVID-19 provider relief funds enriched wealthy hospitals doesn't reflect the struggles the industry is facing, Ameri- can Hospital Association President and CEO Rick Pollack wrote in a letter to the editor published April 7. e Post article said that the nation's richest health systems thrived amid the pandem- ic, reporting hundreds of millions of dol- lars in surpluses aer accepting pandemic relief funds. Mr. Pollack argues that the Post's article cher- ry-picks data and fails to recognize that hos- pitals across the U.S. fought the pandemic, "all while facing their greatest financial crisis." According to Mr. Pollack, in most instanc- es hospital's didn't apply for the amount of funding they received from the Provider Re- lief Fund. Additionally, if they received more funds than their COVID-19 expenses and lost revenue, the excess funding will be re- turned to the government. "Congress recognized the critical role hos- pitals play as the backbone of our healthcare system, and swily took steps to provide sup- port to ensure hospitals would remain resil- ient. e federal government created multiple formulas to allocate funds to all types of hos- pitals, and worked appropriately to get this critical relief out quickly as we were facing a crisis situation," Mr. Pollack wrote. e AHA estimated that the hospital field would lose more than $320 billion in 2020, and could lose up to $120 billion in 2021. S&P Global Ratings and Moody's have also released financial outlooks predicting contin- ued financial woes in 2021. "Each hospital and health system came into the pandemic with its own unique financial situation. Cherry-picking financial data from a few health systems is not reflective of the struggles and challenges facing our field," Mr. Pollack wrote. n COVID-19 spurs hospital megamergers: 5 things to know By Ayla Ellison T he number of hospital and health system merger and acquisition deals declined in the first quarter of this year, but the average transaction size soared, according to an analysis from healthcare industry consultant Kaufman Hall. Five things to know about hospital merger and acquisition activity in the first quarter: 1. There were 13 hospital and health system deals announced in the first quarter of this year, down from 29 deals in the same period a year earlier. 2. The smaller number of transactions in the first quarter of 2021 was offset by a higher number of "mega" transactions in which the smaller partner or seller had average annual reve- nue of more than $1 billion, according to the report. 3. There were several transactions in the first quarter of this year with seller revenue of $500 million to $1 billion. 4. Average seller size revenue was $676 million in the first quarter of this year, the third-highest quarterly figure for aver- age seller size Kaufman Hall has recorded in the last decade. 5. First-quarter merger and acquisition activity included sev- eral significant transactions. Chicago-based CommonSpirit Health announced it plans to sell 14 hospitals to Duluth, Minn.- based Essentia Health. n Pennsylvania cancer center to lay off 365 workers By Ayla Ellison C ancer Treatment Centers of America is selling its hospital in Philadelphia and will lay off the facility's 365 employees, according to a closure notice filed with the state in April. Boca Raton, Fla.-based Cancer Treatment Centers of America signed an agreement in March to sell the hos- pital to Philadelphia-based Temple University Hospital. The deal requires approval from the Pennsylvania Depart- ment of Health. In the notice filed with the state, Cancer Treatment Centers of America said some displaced Philadelphia workers may be offered jobs at affiliated entities outside of Pennsylva- nia, according to an April 2 Philadelphia Business Journal report. The company's other hospitals are in Chicago, At- lanta, Phoenix and Tulsa, Okla. In March, the company an- nounced it will close its hospital in Tulsa June 1. Cancer Treatment Centers of America said in early April that it anticipated the layoffs in Philadelphia would begin after May 30, according to the Philadelphia Business Journal. Temple Health CEO Michael Young told the Philadelphia Business Journal that the system wants to hire as many CTCA workers as possible if the deal is finalized. n