Category: CARES Act
As net patient revenue declined, operating expenses rose 5% from 2019 to 2020, according to an analysis of financial statements from the 25 largest nonprofit health systems in the U.S.
Providers must report how they spent funding received via the CARES Act by Sept. 30, but they are still grappling with questions related to what expenses need to be reported amid shifting government guidance.
The HHS has extended some of the deadlines for using provider relief funds and reporting on that use. Though the move is mostly positive for providers — who were clamoring for this extension — there may be some additional work required to prevent confusion.
Providence posted a $221 million operating loss in the first half of 2020 due to the Covid-19 pandemic. The Washington-based health system saw patient volumes decline by 13% in the first six months.
HCA Healthcare posted a $1.07 billion profit in the second quarter, despite a dropoff in patient volumes due to the cancelation of elective procedures. A large portion of that stemmed from relief funds allocated through the CARES Act.