Virus-related health funding bill moving, but NC hospitals say they're down $1B a month

N.C. Healthcare Association says hospitals' bottom lines are down $1 billion a month due to COVID-19.

Posted 5:22 p.m. Apr 23, 2020 — Updated 6:20 p.m. Apr 23, 2020

Travis Fain

, WRAL statehouse reporter

RALEIGH, N.C. — Lawmakers in the state House backed a bill Thursday with more than $600 million in it for COVID-19 research, medical care, hospital bailouts and a slew of other programs.

A key budget writer called it "phase one." The North Carolina Healthcare Association says hospitals around the state are out about $1 billion a month because of the elimination of profitable non-essential procedures and spending on COVID-19 preparations.

The House working group, laying out priorities ahead of next week's legislative session, also approved a bill that details long-term plans for a new state stockpile of personal protective equipment – the PPE considered so crucial to protect hospital and other front-line workers from the new coronavirus.

The bills include funding for rural hospitals and a temporary Medicaid boost, if the federal government signs off on it, to cover COVID-19 treatment costs for people up to 200 percent of the federal poverty level. That's an annual income of about $50,200 for a family of four.

Rep. Donny Lambeth, R-Forsyth, the top House budget writer, called the "phase one" bills "a robust plan, based on what we have heard."

Congress has also sent roughly $900 million to North Carolina hospitals and doctors as part of its stimulus efforts, but NCHA spokeswoman Cynthia Charles said that's, "not even close to that $1 billion a month number."

"NCHA estimates that NC hospitals would likely need a $3 billion bailout (due to anticipated losses for March-April-May)," Charles said in an email.

Charles said she couldn't answer follow-up questions about employee layoffs or hospital executives willing to take pay cuts because the association isn't tracking that information. Some 95 percent of North Carolina hospitals are NCHA members.

"Virtually all hospitals told us they expected to have negative cash flow in March, and that is likely also true for April," Charles said in an email. "The current situation cannot be sustained. Rural hospitals have less financial wiggle room than their larger, more urban counterparts. All of the rural hospitals survive on those daily procedures that are no longer happening."

The bills backed Thursday by the working group include $75 million for rural hospitals.

The General Assembly goes into session next Tuesday, and the House of Representatives has had working groups preparing legislation. Those bills will also need approval from the state Senate, which hasn't yet held public committee meetings, and Gov. Roy Cooper. So far, all indications are the branches are cooperating.

Bill drafts backed Thursday by the House include a number of temporary policy changes meant to boost staffing numbers and otherwise help the health care industry deal with COVID-19. One bill lays out a plan to create "a strategic state stockpile of personal protective equipment (PPE) and testing supplies" with a five-year budget.

The study contemplated would also look at ways to increase production in the state.

The money bill includes the following:

$25 million each to Duke, UNC-Chapel Hill, East Carolina and Wake Forest for vaccine development, community testing and other research
Another $10 million to Campbell University for "a community and rural-focused primary care workforce response"
$25 million for food banks, adult and child protective services, homeless and domestic violence shelters, housing security, child care and other relief services
A $100 per-child, per-month boost for foster parents for April through June
A 5 percent increase in payments to Medicaid providers
$50 million to buy personal protective equipment
$25 million for testing, contact tracing and other trend analysis on the virus
About $75 million for rural hospitals through the North Carolina Healthcare Foundation
Tens of millions more for hospitals in general

After some discussion, an amendment was added to one of the two bills to provide temporary liability relief from civil lawsuits to health care workers treating COVID-19 patients. Support was not unanimous, and Lambeth said the issue may be revisited next week.

Thursday's meeting dealt only with health concerns. Other legislation is coming together on economic assistance, election changes, school changes and a range of other issues.

The state NAACP and some of its partnering groups said they're planning a virtual press conference Friday to provide suggestions ahead of the session.

"Poor people and black and brown people are being disproportionately impacted by this deadly virus, both physically and economically," the groups said in a news release. "Higher death rates and higher unemployment rates during this pandemic are crippling groups that are already among the most vulnerable and overlooked in our society. North Carolina’s leaders have a responsibility to develop recovery plans that will address the health and safety and economic needs of all North Carolinians, while protecting our democracy."

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