Becker's Hospital Review

12 CFO / FINANCE Rural hospitals may get paid to become standalone ERs By Alia Paavola R ural hospitals that close inpatient beds and revamp as standalone emergency rooms may receive more funding under a proposal buried in the almost 6,000-page COVID-19 relief bill signed in late 2020, Bloomberg reported June 10. The measure included in the act — introduced by Sens. Amy Klobuchar, D-Minn., Chuck Grassley, R-Iowa, and Cory Gardner, R-Colo. — calls for rural hospitals to re- vamp their service offerings to obtain the rural emer- gency hospital designation. Hospitals that obtain this designation will receive more funding. Rural hospitals with fewer than 50 beds can apply for the designation, which takes effect in 2023. "It gives a chance for these hospitals to exist," Spencer Perlman, director of healthcare research at Veda Part- ners, told Bloomberg. "It's a choice between what you have now and nothing." Mr. Grassley and Ms. Klobuchar sent a letter to CMS urging the agency to prioritize the implementation of the new designation. "If nothing is done, more hospitals and rural Americans will continue losing access to essential medical ser- vices, resulting in poorer outcomes and higher costs for patients and taxpayers," Mr. Grassley and Ms. Klo- buchar said in the letter. n • Northwell chief: Medical debt ombudsman will 'check and balance' collections By Katie Adams and Molly Gamble C ommunication is key when it comes to hospitals handling pa- tient debt efficiently, according to Rich Miller, Northwell Health's executive vice president and chief business strategy officer. Looking to establish an independent reviewer to help patients pay their medical debt and avoid legal action, the New Hyde Park, N.Y.-based health system said June 15 it will create a medical debt ombudsman. "It is similar to how an ombudsman in media or government works: an independent party that works as a check and balance to ensure there is an attempt to reach out to patients to make sure they know the options available to them and take an independent look at an individual's pro- pensity to pay," Mr. Miller said. e ombudsman, which Mr. Miller says will be staffed by an indepen- dent but yet-to-be-determined third-party firm, will communicate with patients about payment plans, discounts, charity care, insurance cover- age and other options for assistance. e ombudsman will serve as a liaison between patients and Northwell's financial assistance program, proactively contacting patients who have been unresponsive to their medical bills. ose patients may be directed to one of Northwell's 120 financial counselors or notified of the system's financial assistance applications available in 22 languages or interpreta- tion services available in 250 languages, among other resources. e ombudsman will also examine individual patients' ability to pay for their medical debt. Mr. Miller said it will act as a "Good Housekeeping seal of approval," taking into account situations that may have changed a patient's financial reality, such as job loss or other challenges. If the ombudsman finds a patient does not have the ability to pay for their medical debt, Mr. Miller said Northwell has "no interest in pursuing legal action." He also said Northwell will not take any legal action against pa- tients over their debt until it has an ombudsman party in place. e share of Northwell patients that face legal action over unpaid med- ical bills is less than 0.1 percent. e system provided $253 million in charity care in 2020. "We believe we have the strongest charity care pro- gram in our market," said Mr. Miller. "We feel we have strong financial assistance programs that we offer to patients. We want to help every patient that has needs," said Mr. Miller. "For patients who have the ability to pay, they should pay their bills. When patients who have the ability to pay do not do so, it endangers our ability to provide assistance to those who have needs." As of June, Northwell was in talks with more than one group to fill the ombudsman role. Mr. Miller said the system seeks an organization that has the ability to be independent and an interest in protecting vulnerable populations. n Texas hospital files for bankruptcy By Alia Paavola H eights Hospital in Houston filed for Chapter 11 bankruptcy protection June 1, according to court documents. The hospital listed assets of $100 million to $500 mil- lion and liabilities ranging from $10 million to $50 million. The bankruptcy case was filed in the U.S. Bankruptcy Court for the Southern District of Texas. The bankruptcy filing comes after the hospital closed suddenly and locked out staff in January over unpaid rent. Heights Hospital was once an acute care hospital but lately provided outpatient and specialty care. n

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