CCHS reports financial hit due to COVID-19

 

September 3, 2020

-File photo

DAYTON– Business in 2020 is down significantly resulting in loss of revenue of $1.8 million and patient revenue is under budget by $816,790, Columbia County Health System CEO Shane McGuire reported to Hospital Commissioners at the August meeting.

"It is worth noting that our year-to-date gross patient revenue is under budget by $1.8 million dollars while net patient revenue is just $816,790 under budget," said McGuire. Deductions from revenue is $1 million under budget offset by favorable Medicare settlements and the effects of lower volumes." The operating expenses are underbudget by $467,000 because of reduced services.

"Normally being $1.8 million off budgeted gross revenue and $800,000 under net revenue would be catastrophic, but this is not a normal year," said McGuire. "We can see the $1.7 million dollar influence the "grants" section has had on our year-to-date bottom line. This has offset what would otherwise be considered a challenging financial year."

Cheryl Skiffington, head of the revenue cycle team, reported CCHS processed on average around 3,000 claims per month prior to COVID-19 and the Stay-at-Home Order. Since that time, claims have dropped to around 700 per month.

Despite the reduction in revenue, CCHS continues to pursue three projects. The Assisted Living project which will be mainly funded through grants is projected to begin by early next year. McGuire said, "We are looking at officially naming that project through some type of community outreach and a 'Select the Project Name' poll."

The dental care facility may take longer to begin since the board hasn't approved a contract as of yet, but McGuire previously expressed hopes that both the dental project and the assisted living project would be completed in tandem. This project will also be funded through grants.

The additional project is for acute care, in case of a rise in COVID-19 cases in the area, this would allow for better preparedness and care. This would bring in suitable suction, medical grade oxygen and medical gas. According to McGuire, "Each project will be approved separately as budget and ability allow. Project updates will be presented at the September board meeting for approval."

CCHS is also pursuing a childcare benefit for staff, including for those who work non-traditional hours. This would include a childcare facility specifically for staff.

Chief of Staff Kyle Terry, M.D. reported a change to COVID-19 precautionary protocols. Staff is no longer required to wear N95 masks, as clarified by the Department of Labor and Industries unless they are working directly with patients who may have COVID or need a breathing treatment or intubation. Other masks are now acceptable in other cases and Dr. Terry said this should help preserve the supply of N95s. Eye protection is now required for every patient encounter unless they have had a negative COVID test.

 
 

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