Springfield Business Journal_2021-03-01

SPRINGFIELD BUSINESS JOURNAL · 9 MARCH 1-7, 2021 NEWS A CONVERSATION WITH HEALTH CARE Dr. Gregory Ledger, Mercy Springfield Communities’ new chief medical officer, says herd immunity may be on the way this year for COVID-19, but an annual booster shot is likely to combat the virus. PAGE 10 $320B Projected loss of revenue in 2020 for hospitals nationwide by Jan Peterson · Contributing Writer When the COVID-19 pandemic arrived in the Ozarks, it shut down most revenue streams for area hospitals almost overnight. As CoxHealth, Mercy Springfield Communities and Citi- zens Memorial Hospital scrambled to respond, leaders say they did so without the money that typically flows from elec- tive surgeries and other procedures, health screenings such as mammograms and colonoscopies, and even emergency de- partment visits. It all just stopped. At the same time, the health systems spent more in order to prepare to treat an influx of COVID-19 patients, and the prices for much of what they needed skyrocketed. The American Hospital Association trade group estimates hospitals nationwide lost $320 billion in revenue in 2020, with $51 billion a month lost March-June alone. Regionally, hospital executives say a combination of money through the coronavirus relief bill and a history of prudent fis- cal moves have helped buffer the losses but revenues remain far below pre-pandemic levels. A series of blows At CoxHealth, Chief Financial Officer Jake McWay de- scribed March 2020 as hitting a fiscal brick wall. “Volumes dropped 25% in some areas, 65% in other areas – just overnight,” he said. McWay estimated during the critical period of mid-March through May, revenue was down about $75 million. Mercy’s losses in the Springfield region were even greater. President Craig McCoy said the health care system was down more than $150 million during the same time. In the months following the pandemic, Cox and CMH opt- ed to retain employees while Mercy stanched losses by laying See CARE on page 16 2020 hit hospital bottom lines hard as demand for coronavirus care stretched operations COST OF CARE MCKENZIE ROBINSON CoxHealth is $1.5 million a week above expected costs for contract labor, such as traveling nurses, due to increased staffing demands.