Springfield Business Journal_2021-03-01

16 · SBJ.NET MARCH 1-7, 2021 off nearly 700 employees , announcing early retirements and a 26% pay cut for the hos- pital’s leaders. Each of the hospitals received Corona- virus Aid, Relief and Economic Security Act funding to mitigate the losses. Mercy received $42 million, Cox received $28 mil- lion and CMH CEO Gary Fulbright said the Bolivar system received $15 million. “Without that, it would have been very tough,” Fulbright said. While each of the systems took on initial expenditures for adding beds and equip- ment, executives say ongoing expenses created a greater problem. They all cite the same is- sues: additional staffing, per- sonal protective equipment, expensive medicines, such as remdesivir for COV- ID-19 treatment, increased staffing needs and the intense labor demands of treating COVID-19 patients. The trouble with PPE was not only price spikes in conjunction with demand, but also the volume of staff required to care for COVID-19 patients ballooned. McCoy said prior to the pandemic, Mer- cy had enough N95 respira- tors to last 117 days. “When COVID hit and we put PPE precautions in place, we went through that supply in seven days,” he said, adding the price increased tenfold. An AHA report showed that PPE prices went from a pre- pandemic level of 35 cents per bed per day to $25.58 per bed per day. The pandemic also ushered in needs for new jobs. “From patients themselves to people who have to be in place to watch other staff put on and off protective equipment, screeners at the door, managers devoting their time now to dealing with the response – there’s just a lot of people devoted to working on this,” CoxHealth’s McWay said. And some staffing is more affordable than others. In order to meet the needs of patients suffering from CO- VID-19 and fill in gaps from ailing skilled-care providers, hospitals turned to agencies that provide travel nurses and other care providers. The cost of a travel nurse has gone from about $60 an hour to as high as $200 an hour, the executives report. “We are $1.5 million a week above what we expected on contract labor,” McWay said. As with anything, the cost is about supply and demand. “It wasn’t as big of an issue over the summer. In the spring, the Northeast had a surge. In summer, it was the South,” he added. “Then what happened in the fall/ winter, the entire country had one. We had an unbelievable demand for travel nurses and staff.” Then there’s the price of treating COVID-19 patients. “One of the things not being talked about enough is the cost of drugs to treat these patients. It’s very high and we’ve had to ac- cumulate a great supply,” McWay said, not- ing remdesivir can cost $3,000 per patient. McCoy said that while Medicare pays a bit more for COVID-19 patients, “remde- sivir and PPE eat through that 20% very, very quickly.” “It’s not something that’s even a break-even service line,” he added. Finding an equilibrium Hospital executives say while they have good safety protocols, such as temperature check sta- tions, sanitation procedures and masking requirements, patients remain wary of visiting clinics. “There’s a certain population that’s re- luctant to get in health care if they don’t have to,” CMH’s Fulbright said. He said providers are contacting pa- tients, encouraging them to go in for annual physicals, colonoscopies and other screen- ings, but the response has been tepid. McCoy said telemedicine has helped Mercy providers connect with and contin- ue to treat patients. “If there’s a silver lining to COVID, it’s things that came out that really forced a change in business in rapid fashion. When the government made changes in the reimbursement for video visits, that changed the business dramatically,” he said. Even visits to the emergency departments remain down 15%- 20% from pre-pandemic levels, McCoy said. McWay and Fulbright say that’s also true at their systems, and when patients do show up they tend to be sicker. Even so, demand for non-COVID-19 beds remains about 20% below normal, McWay said. Each of the executives pin hopes for a rosier financial picture on the vaccine. Un- til the community reaches 70% inoculation rate, herd immunity won’t be achieved. “We’ve got to roll out the vac- cine. The challenge for us is … the health systems are fully prepared to vaccinate large por- tions of people, but we can’t get the vaccine,” McCoy said. “The supply that we get to us every two weeks, we can administer in two days or less. There doesn’t seem to be a good answer in what’s happening in that supply chain.” McWay said he hopes things will at least stabilize so he can start to pare expenses, although he expects it to take a while. “There’s going to be a certain level (of COVID-19) in the picture ongoing,” Mc- Way said. “But that also means that we’ve built up and staffed up at these higher levels, so we have to be very diligent in bringing that back down, letting temporary costs roll off.” HEALTH CARE Research Branding Design & Copy Video & Photography Website & Digital Development Traditional & Digital Media Through times both ordinary and extraordinary, ADsmith’s dexterity and dedication make us shine. ADsmith.biz A n g e l a S m i t h l i t B u i l d i n g B r a n d s that build memories. i l i . From exquisite videos to elegant artwork, stunning websites to effective traditional and digital campaigns, ADsmith has proudly supported Maxon Fine Jewelry for nearly fifteen years. “ ” Care: PPE costs skyrocket during pandemic Continued from page 9 Jake McWay: Costly COVID-19 treatments directly hit bottom line. Craig McCoy: Mercy received $42 million in coronavirus aid. Gary Fulbright: Some patients are reluctant to return to in-person appointments.