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Independent Report Finds CA Hospital Losses From COVID-19 Could Lead to Long-Term Changes, Service Reductions

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Independent Report Finds CA Hospital Losses From COVID-19 Could Lead to Long-Term Changes, Service Reductions  

Immediate economic relief is needed for financially challenged hospitals

SACRAMENTO (June 5, 2020) – A new report from Kaufman Hall, a nationally renowned independent consulting firm with extensive health care finance expertise, has found that the COVID-19 pandemic is likely to lead to long-term changes to financial stability and care delivery in California hospitals, many of which were already operating with negative margins. This report, which was commissioned by the California Hospital Association, comes on the heels of one released on Wednesday by the independent California Health Care Foundation, which also foretells long-term economic damage on California hospitals.

“Since the outset of the pandemic, California hospitals have rightfully focused their efforts on caring for COVID-19 patients, protecting their workers, and preserving the safety of their communities,” said Ken Kaufman, chair of Kaufman Hall. “Our research shows that these vital efforts have come at an extremely high cost. When coupled with an already challenging financial environment prior to COVID-19, California hospitals are now facing a very difficult path forward.”

Special Message for California Hospital Volunteers

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In a short video, Carmela Coyle, California Hospital Association (CHA) President & CEO updates volunteers and volunteer leadership on how the COVID-19 crisis has economically impacted hospitals and what CHA is doing to assist them.

Her video message also addresses a question that might be on a lot of minds: When can volunteers return to hospitals? Recognizing the integral role that hospital volunteers play, it’s not a matter of “if” but “when,” Coyle said. Your work is deeply missed by everyone — leadership, staff, patients, etc., — she said, but it’s not worth the risk. There remains some work to be done to restore Californians’ confidence in hospitals, but they can’t wait to welcome you back, she said. 

CHCF Report Confirms California Hospitals Experiencing Substantial “Financial Shock” Due to COVID-19 Response

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CHCF Report Confirms California Hospitals Experiencing Substantial “Financial Shock” Due to COVID-19 Response

“Since the onset of the COVID-19 pandemic, California’s hospitals answered the call to respond to this unprecedented crisis — incurring enormous, unplanned expenses for staffing, equipment, and supplies while simultaneously cancelling non-emergency and elective procedures,” said Carmela Coyle, President & CEO of the California Hospital Association. “These actions have resulted in more than $10 billion in short-term losses, a figure confirmed by the California Health Care Foundation, yet hospitals took the actions willingly because it was the right thing to do. CHCF’s new, independent, study confirms the depth of the other crisis we are now facing – a ‘financial shock’ to hospitals so severe that it will impede hospitals’ ability to keep staff, prepare for a COVID resurgence, and care for their communities.”

“For the past several weeks, hospital leaders up and down the state have been sounding the alarm about the devastating fiscal crisis they now face as a result of responding to the pandemic,” Coyle said. “The CHCF report lays out in stark terms just how acute these challenges are – and will continue to be — for the foreseeable future.”

“Hospitals are essential to California’s economic recovery. Schools and business cannot reopen, government services cannot operate, and people cannot return to work unless hospitals are open, staffed, and ready to care for those in need,” Coyle added. “In this moment, we renew our call for our state’s elected officials to stand up for hospitals — just as hospitals have stood up for all 40 million Californians. We urge legislators and Governor Newsom to prioritize California’s hospitals in the state’s budget negotiations by allocating $1 billion in financial relief by June 30.”

The Joint Commission to Resume Surveys This Month

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On May 27, The Joint Commission (TJC) announced that it will resume surveys in June. The announcement says that TJC account executives will  contact organizations due for a survey to assess the impact that COVID-19 has had on their operations and their current state.

Updates for the Week of June 1

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The Centers for Medicare & Medicaid Services issued the following updates this week:

Reminder: Hospitals Must Preview July 2020 Public Reporting Data by June 3

CEO Message: Our Community, Our Duty

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“Our lives begin to end the day we become silent about things that matter.” – Martin Luther King, Jr.  

Every so often (it seems incredibly frequent these past few years), something happens that shakes every good person’s sense of moral justice. In May 2020, it was the killing, on camera, of an unarmed black man who pleaded — for eight minutes and 46 seconds — with the officer whose knee was pressed into his neck, for breath … for his mother … for his life. 

CMS Approves Hospital Fee Program Managed Care Rates

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On Monday, the Department of Health Care Services (DHCS) shared four approval letters, dated May 18 and May 26, from the Centers for Medicare & Medicaid Services (CMS). The approved rates include  only the Hospital Fee Program for Jan. 1-June 30, 2017. DHCS is still waiting on CMS’ approval of rates for state fiscal years 2017-18 and  2018-19.

2020 California Hospital Compliance Manual Intranet PDF Download

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Thank you for purchasing
CHA’s 2020 California Hospital Compliance Manual (INTRANET PDF version).

 

Your purchase is subject to the following terms of use:

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