By CRISTINA JANNEY
Hays Post
HaysMed is trying to make up financial losses due to the COVID-19 outbreak in what the CEO calls a marathon to recovery.
The hospital was affected on both the revenue and expense sides by the pandemic.
As the pandemic hit the U.S., the hospital canceled patient visits and elective surgeries as directed by Kansas Board of Healing Arts to make sure enough personal protective equipment was available to deal with the COVID-19 crisis.
This meant the hospital was not generating the revenue that its expenses were based on, Edward Herrman, HaysMed president and CEO, said via email.
"We have stocked up on PPE over the last few months, which has allowed us to now expand our service offerings back to normal," Herrman said. "We never stopped doing emergent cases."
Herrman said the hospital has a great screening process for all patients going for surgeries or procedures. It’s made the hospital safer … all the way around, he added.
"We are tightening our belts in areas away from patient care and looking for ways to be good stewards over our resources," he said.
On the second front, the hospital had additional expenses to ensure it was prepared to take care of patients should the hospital receive a surge of COVID-19 positive patients.
Herrman did not put a dollar figure on either the increase in expenses or the decrease in revenue.
Doug Gaston, senior vice president and chief financial officer at The University of Kansas Health System, discussed the financial impact of the pandemic on hospitals in the system during a news conference in May.
Gaston said hospitals have been hit hard by the pandemic and can’t stand big disruptions and loss of patient volume. Some hospitals in the state lost as much as 20 to 40 percent of their patient volume.
Most hospitals have a margin of about 1.7 percent. That means for every $1,000 the hospital takes in, $17 is left after expenses.
He also said The University of Kansas Health System has spent about $10 million on facility upgrades, supplies and lab testing to meet the demand of treating COVID-19 patients.
HaysMed has received government aid to offset some of the pandemic's economic impact, Herrman said.
"However, the grant does not cover the loss of revenues from canceling and postponing surgeries and procedures," he said. "The dollars received have been spent on our best and greatest resource, people. We have not furloughed or laid anyone off here at HaysMed. The grant funds helped in covering that cost."
Herrman also did not reveal the exact amount of the grant funds.
The hospital is still hiring in specialized areas of need, Herrman said. However, the hospital is holding back on new jobs that were slated for the next fiscal year.
During the COVID-19 shutdown of elective procedures, the hospital used a reassignment pool where its associates were assigned job duties around the campus.
The hospital has taken this time to do additional cleaning and maintenance at the campus. The hospital used most of the reassigned employees for its screening stations for the facility.
"Our goal was to keep people working, and we have been very successful in doing that," Herrman said.
Herrman said the hospital could take another financial hit if there would be another significant wave of COVID-19 infections.
"We remain prepared and vigilant should another wave of patients occur," he said. "That is why we are asking the community to maintain personal responsibility and help keep safe and not spread the virus.
"Do not let down their guard. Continue to wash hands, cough into elbow, wear a mask when out and maintain six feet distance, only go out when you ‘have to go out.' Don’t jump back into old routine too soon. Follow the phased approach outlined by KDHE."
He described the process of financial recovery as a marathon and not a sprint.
"We plan to retain our employees because they need to care for our community," Herrman said. "We are working hard to help the community understand it’s fine to come and get health care.
"So [we are] 1) tightening our belt 2) getting back to work by educating the public on how safe it is here 3) continuing to apply for federal grants and other money to make ends meet better and get through this. We will be feeling the financial effects for some time. It’s an evolving story, and we are not at the end of it yet."