Letter to the Hon. Alex Azar, Secretary of the Dept. of Health and Human Services - Schumer reveals: After months of fighting pandemic on the frontlines Putnam hospital strapped for cash & overlooked by Feds for millions in critical recovery $$$ for PPE, testing, & more due to bureaucratic guidelines; Schumer calls on Feds to immediately give Putnam hospital their fair share

Letter

Dear Honorable Sec. Azar,

I write to request that the Department of Health and Human Services (HHS) develop and distribute a new tranche from the Public Health and Social Services Emergency Fund (PHSSEF) for providers that would support those hospitals in New York State, including Putnam Hospital which is the only hospital in Putnam County, New York, that were not aided by the previous specialized tranches targeted at hospitals in COVID-19 hotspot areas, rural hospitals and safety net hospitals with all due speed.

As you know, New York State has and continues to suffer enormously during the coronavirus pandemic. For months, New York was the global epicenter of the crisis with new cases hitting over 10,000 a day at one point. Though making large strides onto the road to recovery, New York still has the highest recorded number of coronavirus cases at over 407,000 and over 32,000 COVID-related deaths over double the number of any other state. As a result of this incredible suffering, New York now faces one of the most challenging public health and economic crises in recent history. In New York's Hudson Valley Region, where Putnam Hospital is located, there have been approximately 70,000 cases of coronavirus and over 2,740 COVID-related deaths. (NYT 2020). In fact, yesterday there were at least 6 new positive cases of coronavirus in Putnam County according to New York State.

In April 2020, Congress included $100 billion in the Coronavirus Aid, Relief, and Economic Security (CARES Act) and an additional $75 billion in the Paycheck Protection Program and Health Care Enactment Act for the PHSSEF to support providers throughout the country during the COVID-19 pandemic. This appropriation in both pieces of legislation was intended to reimburse providers for "health care related expenses or lost revenues that are attributable to coronavirus."

As of the July 10th, 2020 your Department has committed $112.4 billion across eight separate tranches. The Department employed a formula to allocate the first $50 billion to Medicare providers based on available data of the providers' previous year revenue. In this first distribution New York State's hospitals received over $1.45 billion dollars. Your Department then delivered subsequent tranches that delivered money to hospitals with eligibility and funding levels based on whether they were located in areas with high levels of COVID-19 cases, rural designations, Medicaid providers yet to receive targeted funding and whether they had safety-net status. In all, 182 hospitals across New York State, hospitals in the state hardest hit by the coronavirus pandemic, received additional support through these targeted tranches from the provider fund. (Need to fact check all this once we have New York numbers from the latest hotspot and Medicaid tranches)

However, as of July 9th, 2020, these distribution formulas and eligibility standards excluded roughly two dozen hospitals across New York State that suffered enormous financial losses. These hospitals complied with all federal and state protocols and recommendations by forgoing elective procedures and investing heavily in preparation for the COVID-19 pandemic. These sacrifices and proactive measures resulted in tens of millions of dollars in lost revenue and high coronavirus-related expenses. While these losses mirror those incurred by the 182 hospitals captured by the specialized distributions from the provider fund, the two dozen hospitals left out of these distributions suffered these losses for months without further assistance from the fund. Putnam Hospital still has not received funding from any HHS specialized tranche to date, despite HHS allocating a new specialized tranche last Friday. Notably, Putnam Hospital was overlooked in the latest specialized tranche amidst positive coronavirus cases rising in the County over the past two weeks and despite front line hospital workers expressing concerns surrounding a lack of PPE.

Putnam Hospital has lost over $21,395,814 between March and June, even after accounting for the approximately $3 million in funds received from the PHSSEFF. While the hospital has been holding out for as long as possible, the lack of support has forced them to incur extra costs, including spend over $500,000 for PPE, supplies, and equipment. The pressure on cash flow is extremely concerning for Putnam Hospital looking towards as they plan to continue providing high quality care in future months, and even years, during this crisis and in the recovery after. Putnam Hospital has stopped its capital spending and has had to work to identify expenses that can be immediately deferred. Significant dollars have also been spent on outfitting the hospital to provide safe environment to treat patients. It is unconscionable that hospitals such as Putnam Hospital, who have treated approximately 300 patients with COVID-19 on the frontlines of this pandemic, should be forced to make these kinds of cuts to investments that would have improved the quality of care provided to its patient community.

I ask that your Department craft a new distribution formula from the PHSSEF provider fund that captures Putnam Hospital and other hospitals that have not been adequately supported by the Department amid this crisis.

I thank you and your Department for your service during this crisis.

Source