More than $1B in bailout funds go to CHS, HCA and UHS

Becker's Hospital Review ^ | April 30, 2020 | Ayla Ellison

[buckalfa]

Community Health Systems, HCA Healthcare and Universal Health Services received a total of more than $1 billion from the $100 billion emergency relief fund for healthcare providers created under the Coronavirus Aid, Relief and Economic Security Act.

The three for-profit hospital operators disclosed the grants during their first quarter earnings calls. Each company also received advance Medicare payments to help offset the financial impact of COVID-19. The advance payments are loans that must be repaid, while the grants do not require repayment.

Here is a breakdown of the grants and advance payments each company had received at the time of their earnings call:

Community Health Systems (Franklin, Tenn.) CARES Act grants: $245 million Medicare advance payments: $1.2 billion

During CHS' earnings call on April 29, Executive Vice President and CFO Kevin Hammons said the company has ample liquidity to get through the COVID-19 crisis due to the CARES Act grants, proceeds from hospital divestitures, current cash on hand and additional borrowing capacity under its asset based loan. Read more about CHS' financial results here.

HCA Healthcare (Nashville, Tenn.) CARES Act grants: $700 million Medicare advance payments: $4 billion

During HCA's earnings call on April 21, Executive Vice President and CFO Bill Rutherford said HCA's cash position is strong due to several factors, including the CARES Act grants, accelerated Medicare payments, adjustments to capital spending and suspension of the company's share repurchase program. Read more about HCA's financial results here.

Universal Health Services (King of Prussia, Pa.) CARES Act grants: $195 million Medicare advance payments: $375 million

During UHS' earnings call on April 28, Executive Vice President and CFO Steve Filton said the grants the company has received are from the first two tranches of CARES Act funding. He said the company is hoping to receive additional advance payments from Medicare. Read more about UHS' financial results here.

[buckalfa]

Evil for profit hospitals enriching themselves at taxpayer expense? Needed financial lifeline because of government mandated service restrictions? Full disclosure: I did work for both HCA and CHS so my opinion may be biased. What say you?

[dljordan]

“I did work for both HCA and CHS so my opinion may be biased. What say you? “

I worked for HCA for eleven years, 1985 - 1996. The Columbia Healthcare merger was just too much for me.

[shanover]

Disgusting. This kind of BS is what fires up the other side with universal/government “healthcare” which is actually much worse in sucking money.

[polymuser]

The government-medical-insurance-pharma complex has replaced the military-industrial complex for badness.

[buckalfa]

I spanned 1981 to 2015. Started with Humana. Then the journey was Galen, Columbia, Columbia HCA, HCA, NetCare, Triad, then retired with CHS. Triad was the best run in terms terms of management and patient care. Oddly enough CHS, with the evil Wayne Smith, allowed me to stay on then retire with dignity after a major health crisis. Honestly, the best thing that could be said for the bunch is that Rick Scott knew how to manipulate a Medicare cost report.

[mewzilla]

The money will likely go to pensions. Hopefully there’ll be enough left over to get back some employees.