Six months into the pandemic, it has been a bumpy ride for Bradenton area hospitals
Local hospitals serve as the final line of defense in the war to save lives during the COVID-19 pandemic.
Manatee Memorial Hospital, Lakewood Ranch Medical Center, Blake Medical Center and Sarasota Memorial Hospital have all traveled a bumpy road during the pandemic, halting and resuming elective surgeries, and controlling admissions and visitation to maintain patient bed capacity and curb the spread of the disease.
So, how are they holding up under the strain of the pandemic?
When asked that question, the chief operating officers of the hospitals in Manatee County, all of which are for-profits owned by some of the nation’s largest health care chains, and Sarasota Memorial, a public hospital, all say it has been a tough six months.
There was the threat that the initially poorly understood, once-in-a-century pandemic would put the lives of doctors and nurses at risk, while overwhelming the hospitals’ bed capacity. Preemptively, some hospitals furloughed health-care providers, placed a moratorium on elective surgeries, banned visitors, and, as a consequence, lost of millions of dollars of income.
In July, Bradenton area hospitals were encouraged to attend informational session to learn how to apply for a portion of $70 million in CARES Act relief funds. Manatee County spokesman Nick Azzara said that County Administrator Sheri Coryea has been working directly with the hospitals on applications.
Kevin DiLallo, CEO of Manatee Memorial Hospital, said in an email the pandemic has had a material impact on the financial status and operations of Manatee Memorial Hospital and Lakewood Ranch Medical Center. Both hospitals have incurred significant expenses and lost revenues attributable to COVID-19.
Manatee Memorial, with 319 beds and Lakewood Ranch with 120 beds, are Universal Health Services (UHS) hospitals. UHS, based in King of Prussia, Pa., reported its net revenues decreased 4.4 percent to $2.7 billion in the second quarter of 2020, compared to the second quarter of 2019, when it had net revenues of $2.85 billion.
“We have had to navigate unprecedented challenges and disruptions to our normal operations. Notwithstanding, we remain able and prepared to serve all the health care needs of our community – COVID or otherwise,” DiLallo said.
Manatee Memorial Hospital and Lakewood Ranch Medical Center have not received any Paycheck Protection Program (PPP) funds, he said.
In April, Manatee Memorial Hospital announced that due to the pandemic, some of its staff would see a reduction in hours with benefits, a redeployment within the organization, or a furlough that would include a retention of company paid benefits.
Blake Medical Center weathers ‘unprecedented challenges’
In response to the same set of questions, the 383-bed Blake Medical Center issued a statement: “Despite unprecedented challenges over the last six months, HCA Healthcare to date has not laid-off or furloughed any employees due to the pandemic. From day one of this pandemic, our focus has been on protecting the well being and livelihood of our caregivers and their families. By doing so, we are able to protect our hospital’s ability to care for our patients and the communities we serve as this crisis continues to evolve.”
Blake has not, however, been without its staffing challenges during the pandemic. Several times nurses have picketed to protest conditions there during the pandemic.
Blake reopened elective surgeries in May but in July, delayed inpatient and elective surgeries again to free up capacity for COVID-19 patients. Blake resumed surgeries again on Aug. 13.
“Funding from the CARES Act has helped our hospital focus on patient care at a time when our community needs us most. The CARES Act recognizes the vital role hospitals play in each community, and the funding provided helps make up for a portion of the lost revenue and extra expense caused by the pandemic through a provider relief fund,” Blake said in its statement.
To date, Blake Medical Center has received approximately $4.87 million in CARES grants. The hospital has not received PPP money or other federal, state or local money due to the pandemic.
“We still do not know the full impact of COVID-19 on our communities or our hospitals, specifically as case numbers surge in certain areas of the country. Many uncertainties remain, including the broader recovery of the economy, unemployment rates, uninsured levels, government regulations and policies, state budgets, and the resurgence and duration of COVID-19.,” Blake said in its statement.
Blake Medical Center is a part of HCA Healthcare, which reported its revenues declined to $11.068 billion in the second quarter from $12.6 billion in the same quarter in 2019.
Sarasota Memorial loses $47 million
Sarasota Memorial Health Care System, an 839-bed regional medical center, is Sarasota County’s largest employer. Founded in 1925, Sarasota Memorial is governed by the nine-member elected and unpaid Sarasota County Public Hospital Board.
From the onset of the pandemic in March through the end of June, Sarasota Memorial invested $1.3 million on equipment to treat patients and protect physicians and staff. This includes ventilators, disinfection equipment and lab testing equipment. The hospital also spent about $4 million on personal protective equipment infection control precautions, extra staffing for patient care, and other needs brought about by the pandemic.
During that same time frame Sarasota Memorial lost $47 million in operating revenue compared to its budget, and is still assessing July and August financial impacts.
In response to the pandemic, Sarasota Memorial implemented cost cutting efforts, including the furlough of approximately 640 staff members in April. Most were brought back in May and practically all by the end of June.
Although patient volume dropped at Sarasota Memorial by half during the ban on elective procedures, it as steadily rebounded as normal operations resumed.
Sarasota Memorial has been paying overtime and bringing in additional per diem staff and travelers to help handle higher-than- normal volumes during the spikes this summer.
The Sarasota hospital received $146 million in CMS Medicare Advance Payments in April. These advance funds were slated to start being recouped by CMS beginning in August. As of Aug. 31, the recoupment had not begun.
“We also received $35 million from the Provider Relief Fund. Those are restricted grant funds that currently remain as a liability on our balance sheet until the terms and conditions are clarified and calculated and we ensure that we have documentation to support compliance with grant requirements,” said Kim Savage, hospital spokeswoman.
The Sarasota Memorial Healthcare Foundation provided more than $2 million to help fund pandemic-related expenses, including money to purchase PPE for staff, a Tru-D ultraviolet robotic sanitizing robot, ventilators, and equipment to expand in-house laboratory testing for COVID-19.
Despite financial challenges the pandemic has brought, the system remains financially stable at this time, due in part to the cost reductions and early decision to flex/furlough staff whose jobs were put on hold during the pandemic, Savage said.
This story was originally published September 3, 2020 at 5:00 AM.
