Letter to Xavier Becerra, Secretary of Health and Human Services - Dr. Ruiz Fights for Covid Relief Funds for Local Hospitals and Doctors

Letter

Dear Secretary Becerra:

I am writing to urge you to distribute the remainder of the Provider Relief Funds that Congress
has allocated for providers and hospitals to help cover the enormous losses that they have
incurred throughout the COVID-19 pandemic. In doing so, I encourage you to prioritize
providers and hospitals experiencing high COVID patient rates; serving a high percentage of
Medicaid beneficiaries or people that are uninsured/underinsured; experiencing severe workforce
shortages (compared to other providers); or are located in rural areas.

While the funds that the Department of Health and Human Services has released thus far have
been critical to helping many doctors' offices and hospitals keep their doors open, it has not been
enough. Of course, these funds were appropriated by Congress prior to the Delta and Omicron
variant surges that had hospitalizations at some of the highest rates of the entire pandemic.
In addition, hospitals and physicians have been faced with huge workforce shortages and have
struggled to retain employees, who have been on the frontlines of this crisis for two years now.

In fact, from the end of 2019, just before the pandemic, to the second quarter of 2021, the staff
vacancy rate at California hospitals jumped 98%, with 78% of hospitals reporting an increase in
staff turnover. Furthermore, a recent survey shows that 54% of California physician offices have
not been able to hire staff back to pre-pandemic levels, which means they are not able to reopen
full-time. These shortages have been exacerbated during the Omicron surge while many health
care workers were forced to stay home because they had contracted COVID. In an effort to
address workforce shortages, many hospitals have attempted to retain workers through bonuses,
housing and childcare support, wellness and mental health programs, and extended leave. These
programs have added to the financial strain that hospitals are facing. It is estimated that
California hospitals alone have lost $16.3 billion in 2020 and 2021. Because federal relief has
not adequately covered these losses and hospitals have been further strained during the recent
Omicron surge, hospitals have had to borrow billions of dollars in emergency loans. A California
physician survey shows practices still experiencing a net 50% revenue loss.

Many hospitals and doctors' offices were already running on razor-thin margins and struggling
to keep their doors open. Additionally, several communities in the 36th district of California,
which I represent, already had low hospital and physician access. We cannot afford for them to
close their doors; it would be catastrophic to many of my constituents.
For these reasons, I ask that you not only release the rest of the money remaining in the Provider
Relief Fund, but also that you direct those funds towards hospitals and providers that have high
COVID numbers; treat high percentages of Medicaid or uninsured/underinsured patients; are
experiencing dire staffing shortages; or are located in rural areas. I appreciate that you have
focused on these metrics in previous tranches of funding, and I urge you to continue prioritizing
vulnerable hospitals and providers. Because they serve communities with low access to health
care, it is critical that we help them keep their doors open to prevent an increase in the health
disparities already plaguing our country.

Thank you for your consideration and for your work to help protect our hospitals and providers,
who have been tirelessly caring for our communities throughout the COVID-19 pandemic.

Sincerely,

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