COVID-19FinancialHospitals

Hospitals begin road to recovery

May 14, 2020 / Susan Morse, Managing Editor

Hospitals want and need to get back to semi-normal, having suffered enormous financial losses from COVID-19, resulting in staff furloughs and wage reductions.

The $100 billion in the Coronavirus Aid, Relief, and Economic Security Act helped providers stay afloat. Hospitals received $50 billion directly. The remaining $50 billion went to pay for the claims of the uninsured and to target COVID-19 hot spots, rural hospitals and Indian Health Service facilities.

The money did not go far enough to keep health systems from having to cut expenses, which in most cases meant personnel.

Kevin Donovan is CEO of LRG Healthcare, which includes two hospitals in the Lakes Region of New Hampshire and about 20 affiliated medical practices. The health system got a loan of $5.25 million from the state and $4 million in CARES Act funding.

“It’s nowhere near what we need,” Donovan said. “Four million is about a week’s worth of expenses. We’re appreciative of the $4 million; it’s not enough to keep us going through the pandemic.”

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Chris J. Stewart

Chris currently serves as Chief Executive Officer of Surgio Health as well as Chief Operating Officer at Ortho Spine Partners. Prior to that, he was the assistant vice president and business unit leader of Medical Device Management for HealthTrust Purchasing Group (HPG).

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