Healthcare Stimulus gets $127 billion of the $2.2 Trillion package released.
So Congress just passed an unprecedented level of government spending as a result of the Coronavirus Crisis. $2.2 Trillion dollars of whopping cash, a lot of which is going to individuals and small businesses.
- But a decent-sized portion of the overall pie – about $127 billion – is related to healthcare stimulus. What’s in it for healthcare providers?
About that Healthcare Stimulus…
Most of the healthcare stimulus part of the bill is vague. Congress allocated about $127 billion to healthcare, $27 billion of which is designated for COVID-19 specific purposes (manufacturing, vaccine development, etc).
Here’s what’s in the healthcare stimulus package related to the Coronavirus Crisis.
- Add an additional 20%: 20% higher reimbursement for any COVID-19 related case in hospitals (inpatient stays);
- Delays to planned Medicare reimbursement cuts (AKA disproportionate share payments, sequesters, etc);
- $100 billion in funding through grants. Anyone who treats COVID-19 patients through Medicare Part A or Part B is eligible for this part of the healthcare stimulus. This fund is super open-ended and is applicable to a broad range of providers – meaning that HHS can use these funds at its discretion and based on need.
- Advanced payments from Medicare. How it works: providers would be able to receive upfront payments from Medicare.
- Those providers receiving payments would ‘pay back’ those Medicare advanced payments (essentially loans) by then NOT receiving Medicare payments once the crisis is over.
- Not in the stimulus package: Laboratory test funding. Their previously scheduled payment cuts are getting delayed, though.
More Healthcare News…
A 10 year drug cost feud.
Blue Cross Blue Shield claims that Walgreens has been overcharging for drugs for over a decade.
Justice Department Sues Anthem over Medicare Advantage Fraud.
The Justice Department sued Anthem on March 27, claiming that the health insurance company knowingly submitted false codes in its Medicare Advantage plans. This is big, considering it’s pretty difficult to prove something like this – especially concerning risk-adjusted payments.
Coronavirus Latest as of 3/30/2020.
- Tracking cases in the U.S. state by state – Bloomberg.
- Global COVID-19 updates – Axios
- Good news: Abbott Labs just developed a portable, 5-minute coronavirus test.
- The coronavirus peak is expected in mid-April.
- Learn more from the WSJ (should be free – no paywall) about how the coronavirus attacks the body.
More stuff…
- The White House just extended its social distancing guidelines until April 30. Previously, Trump was considering an enforceable quarantine on the broader New York area, including parts of New Jersey and Connecticut.
- Johnson & Johnson is looking to begin clinical trials on humans for its COVID vaccine as soon as September
- Someone is always looking to make a quick buck: Trump had to sign an executive order preventing price gouging and hoarding of medical supplies.
- The first federal inmate died from coronavirus. If it starts spreading through prisons…
Other COVID-19 Stories
- The FDA will allow doctors to treat critically ill coronavirus patients with blood from survivors.
- A shortage of protective gear is stalling CVS’ drive thru testing rollouts.
- A consortium of 15 medical and tech firms formed a COVID-19 alliance, aimed at #FlatteningtheCurve
- Amid mounting shortage, 5 facts about the nation’s stockpile of emergency medical supplies
- ICU Bed capacity, similar to acute care hospital bed capacity, varies widely nationwide.
- Payors like Aetna are beginning to waive cost-sharing requirements for patients related to COVID-19 as a gesture of goodwill.
- How health systems are responding as COVID-19 squeezes the medical supply chain
- Fauci says US needs to be prepared for coronavirus to be cyclical
- Shuttered hospitals are re-opening across the U.S. solely for coronavirus cases.
- Medtronic is publishing its ventilator’s design specs to the public so that more production can ramp up quickly.
An unprecedented unemployment chart
Source: https://www.motherjones.com/kevin-drum/2020/03/chart-of-the-day-unemployment-claims-are-up/
Somehow, everything is polarizing.
The Provider Struggle Continues.
Hospitals:
Despite Congress increasing inpatient reimbursement rates related to COVID-19 cases, hospitals are still expected to lose an estimated $1,000 per case. Not to mention the funds they’re losing by suspending elective surgeries.
- Hospitals hit hard by the virus will see huge hits to revenues and threaten financial viability. CMS is continuing aggressive efforts to avoid hospital closures by allowing providers access to interest-free payment advances.
- Other things from the stimulus bill are helping too – like canceling the disproportionate share payment cuts scheduled for later this year.
Even with all of the stopgap measures above, it may not be enough funding. Congress might roll out more funding for healthcare in the near term.
- Read more: How the Coronavirus is impacting hospitals’ operations and financial performance
Physician Practices:
- Although physician practices are technically eligible for reimbursement in the $100 billion emergency funding pool, their businesses – especially independent practices – are hurting.
Primary care physicians are anecdotally reporting about a 75% drop in volumes according to Gist Healthcare.
- Since most ancillary businesses in healthcare flow FIRST through primary care providers (e.g., therapy, elective surgery, specialist care, diagnostic imaging), you can imagine what a 75% drop in PCP visits could have on the REST of the healthcare continuum – especially on the outpatient side of things.
Meanwhile, physicians (as well as nurses and other staff) employed by health systems are seeing pay cuts as hospitals try to stay afloat financially.
Other Healthcare Services…
Similarly to hospitals, CMS is easing accelerated payments for home health providers. Even so, home health aides are starting to feel left out to dry as they face equipment shortages on the front line of care for the elderly.
- Dialysis centers are facing significant challenges in protecting patients from COVID-19
So, in summary, both the inpatient and outpatient sides of healthcare are bleeding pretty heavily right now, and telehealth isn’t yet enough to overcome the sea of red.
Quick Hits
Biz Hits
- Coronavirus is driving a surge in demand for temp healthcare workers.
- Inside the story of how HEB, a Texas grocer, prepared extremely well for the pandemic.
State Hits
- On Tuesday, March 24, Kaiser Permanente scrapped its $900 million plan to build its new corporate headquarters in Oakland.
- Patient groups are telling the Oklahoma governor to withdraw the state’s Medicaid plan.
Other Hits
- How does a ventilator work, anyway?
- Dr. Fauci Was a Basketball Captain. Now He’s America’s Point Guard. (WSJ)
- I Spent a Year in Space, and I Have Tips on Isolation to Share. (NY Times)
- How is China rebounding after the outbreak? (WSJ)
- An open letter from Gilead’s CEO.
- It’s not all bad news: some rays of light amid the COVID-19 outbreak. (ModernHealthcare)
Thought-Provoking Editorials
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