CHARLESTON, W.Va. — West Virginia hospitals were struggling before the coronavirus pandemic placed additional stress on facilities, but the pressure is making hospital leaders review how to continue serving patients.
Jim Kaufman, the president and CEO of the West Virginia Hospital Association, described the issue as a “tipping point” for hospitals, which are also being underpaid by health care programs such as Medicare and insurance plans like the state Public Employees Insurance Agency.
“What we’re looking at is financial challenges,” he said last week on “MetroNews Talkline.”
“If you think about before the pandemic, West Virginia hospitals were struggling already, and you saw several closures and bankruptcies. Since the pandemic hit last March, hospitals now are looking at a $400 million shortfall due to increased costs and lost revenue.”
Hospitals have closed while some facilities have eliminated programs and services. Kaufman noted hospitals lost revenue at the start of the pandemic because facilities could not have non-emergency procedures.
“We were still trying to pay staff and we were still trying to pay suppliers, but you didn’t have money coming in. Like any other business, if nobody’s buying, you lose revenue,” he said. “At the same time, trying to take care of patients that needed care — whether they were COVID patients, stroke patients, heart attack patients — you had sky-rocketing costs.”
Kaufman noted hospitals are collaborating on providing care to ensure people have access to specialists, but it could reduce treatment options for some patients.
According to Kaufman, revenue streams are affected by a hospital’s patients; 75% of patients have insurance through Medicare, Medicaid or the state Public Employees Insurance Agency.
“All of those programs pay less than the cost of care,” he said.
“Other hospitals are able to shift to commercial plans, and they pay more for care to offset that. That’s been one of our biggest problems, especially as you see declining population.”
Kaufman called on state lawmakers to provide some stability and predictability by allowing PEIA to cover costs.
“We don’t want to modify service, and we don’t want to limit access,” he added. “We want to make sure every West Virginian has access. That’s why we’re flagging this issue now.”