Apr 23, 2020 3 min read

A report commissioned by a lobbying group that represents Pennsylvania hospitals says the COVID-19 pandemic is resulting in multibillion-dollar losses for its members.

The group is the Hospital and Healthsystem Association of Pennsylvania, whose president and CEO, Andy Carter, on Wednesday discussed the findings of a report prepared on the way that the outbreak of the contagious respiratory disease had affected hospital systems statewide.

Health Management Associates, the Florida-based firm that HAP commissioned to complete the report, projected total losses of $10.2 billion for statewide hospitals. That estimate included $914 million for March.

Among the reasons for the losses was the suspension of elective procedures to keep patient volume down. In the future, the report’s authors said they expected more patients to be treated at statewide hospitals without being able to pay because they lose their jobs and health insurance as a secondary effect of the outbreak

Even if money from the CARES Act – a coronavirus relief package the federal government approved late in March – Carter said the shortfall is expected to reach a “staggering” $7.1 billion in losses this year.

Washington Health System – which operates Washington Hospital and WHS-Greene hospital near Waynesburg – said late in March that it was undertaking temporary layoffs of some staff to cut down costs.

A figure for how many people were laid off or had their hours reduced wasn’t available, WHS spokesperson Stephanie Wagoner said. She said the figure varies, and that some employees in direct care were cross-trained to work in other departments to deal with a potential surge in patients.

“This has put a financial burden on our health system and as was mentioned a few weeks ago, the hospital stimulus packages will not come close to covering these losses,” Wagoner said.

Carter reiterated a call on the governor and state Legislature to take additional measures he said would offset that strain on hospitals’ piggy banks.

The HAP-commissioned report is based on interviews with officials from hospital systems across the state, from which the authors worked out projections for the overall costs statewide.

Carter said he was confident methods the authors relied on to develop their findings.

None of those systems that provided information for the report are in Washington or Greene counties.

Wagoner said WHS’s finances suffered not only because of the canceled elective procedures, but also the increased prices for personal protective equipment (PPE) and reduced hours and closures of some outpatient clinics.

“Our health system has been proactive in finding ways to save where we can,” Wagoner said. “This would include staffing changes, finding innovative ways to conserve PPE and increasing our telemedicine communication services throughout the health system.”