COVID leaves monetary strain on health systems

Collingwood Crees//July 10, 2023

Collingwood Crees//July 10, 2023

Healthcare systems are facing cash demand situations due to shortages of physical care workers, drug prices, and other issues in the wake of the COVID-19 pandemic.

“2022 is the most challenging year in recent memory,” said Jeffrey Bechtel, senior vice president of health, economics and policy for the Pennsylvania Hospital Association.

“More than a portion of hospitals in the U. S. “The U. S. is trading at a loss,” Bechtel said. And the trend will continue as emerging prices exceed payments. “

Despite this, Bechtel said most Pennsylvania hospitals are at risk of disappearing immediately, but if the trend continues, some will struggle to continue operating.

Bechtel said it was a “perfect storm” with shortages of hard work, rising workers’ prices and higher medicines and supplies.

That, along with Medicare and Medicaid bills that don’t track the cost of care, makes it difficult for hospitals to balance outcomes, he said.

Local physical care systems have said they have faced the same challenges, but are confident they can weather the “storm” by converting the physical care being provided.

“We see those demanding economic situations as an opportunity to show leadership in the post-COVID era, transforming the way care is delivered and moving forward for everyone,” said John Lines, director of Regional Communications, University of Pennsylvania Health System, parent of Lancaster General Hospital. “This includes continuing our commitment to invest in and expand the care we provide, in our workforce and in the communities we serve. “

Penn State Health continues to identify and apply innovations and pricing efficiencies while advancing its long-term strategy, said Barbara Schindo, media relations specialist at Penn State Health.

“These efforts are making a difference and starting to offset monetary pressures, and we expect those innovations to continue,” Schindo said. long-term strategy to build a world-class network that provides health care close to where other people live. “

Edward Karlovich, UPMC’s executive vice president and chief financial officer, said fitness systems’ commitment to its core project has not reduced the monetary effects of COVID.

“We have invested particularly long-term, gaining better access to our network and clinical care across all of our regions, focusing on meeting patients’ strong preference for care to be delivered seamlessly in outpatient settings closer to home,” Karlovich said. “Patient volumes continued to shift from inpatients to outpatients. “

Compared to a year ago, enrollment in UPMC’s fitness plan increased from four million to only about four million members, a 9% increase, due to the expansion of many products, the addition of Medicare, behavioral fitness and the statewide expansion of the Medicaid physical program. Organization of fitness-controlled care.

“During one of the most challenging and turbulent periods in healthcare, WellSpan’s monetary functionality remained strong, as noted through the bond ratings shown on the healthcare system’s position, even as other healthcare systems face significant losses,” said Buczkowski, WellSpan Health’s chief financial officer and executive vice president.

Moody’s Investor Services released a strong outlook for WellSpan’s bond rating, indicating a “clearly market-leading position. “she says.

“The economic hurdles facing WellSpan and other systems regionally and across the country force us to see cost savings in everything we do. Labor shortages, inflation and declining reimbursements force us to reimagine how we deal with those demanding situations and continue cautiously in this new normal,” Buczkowski said.

“WellSpan’s executive leadership also aims to develop strategic partnerships and projects that move the organization toward a value-based style of care that can optimize our functionality while delivering quality, enjoyment and the lowest cost for our patients. “

Bechtel said one of the key points in hospital solvency is Medicare and Medicaid reimbursements. For hospital care, Medicaid will pay 81 cents on the dollar and Medicare will pay 84 cents.

“55 percent of Pennsylvania hospitals get some of their profits from Medicare and Medicaid,” he said. “When they are not properly reimbursed, it puts pressure on the system. “

While there is no silver bullet, Bechtel said improving those bills and creating a comprehensive strategy to expand and workforce can help.

To this end, the Health Care Task Force is creating a roadmap to provide policy recommendations to make education more accessible and affordable.

Bechtel said scholarships and loan forgiveness are two opportunities to inspire others to enter the fields.

There should also be incentives for physicians to act as educators to create the spaces available to those who decide to move into medicine.

UPMC said that amid demanding staffing situations over the past two years, a large component of UPMC’s $300 million investment in 2022 has been the creation of state-of-the-art systems aimed at retention, recruitment and pipeline construction.

In early 2023, UPMC announced its commitment to raise the minimum wage for non-union workers to $18 per hour through 2025 for Pittsburgh and Central/North Central hospitals and related facilities. Starting wages at all other UPMC sites in Pennsylvania, New York and Maryland will succeed at $18 per hour through 2026.

Bechtel said some things that hospitals can do, that are being done here, are expanding telehealth offerings, creating centers to consolidate services, creating ambulatory emergency rooms for rural communities, and team-based nursing models to unleash AI.

“They want efficiencies,” he said.

July 10, 2023

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