Remedying the Financial Impact of COVID-19 with a Measured Return to Financial Security

 

Remedying the Financial Impact of COVID-19 with a Measured Return to Financial Security

By: Tim Thomas

Taking a few steps to quantify the impact of COVID-19 can prepare one’s organization to take advantage of funding made available due to the pandemic. In an effort to get ahead of COVID-19’s financial toll, Engage is recommending steps to capture and document this impact for all our customers. Understanding where and how much of an impact COVID-19 has caused  will enable one’s organization to focus on specific areas for remediation in a post-acute COVID-19 environment.

  1. Implement a Telehealth solution if one does not exist, e.g., MEDITECH Virtual Visits. Funding is available to all Rural Health and Critical Access providers from the FCC. And in a gesture of good will, MEDITECH has waived the required fees for all existing MEDITECH customers for their current offering for 6 months.  
  2. Set up GL accounts for COVID-19 to allow one to report explicitly on its impact.
  3. Document the financial impact for the first quarter over the past 3 years in the following categories:
    1. Revenues (by department)
    2. Expenses (by department)
    3. Supply costs (including ventilators purchased in response to COVID-19.)
      1. If setup, leveraging item numbers makes it possible to identify increased PPE cost from suppliers, increases in “quantity on hand”, etc. as preventive positioning or market forces dictated.
    4. Staff overtime/labor (by department)
    5. Staff exempted from paid sick leave (by department)
      1. Requires Family First Corona Virus Response Act (FFCRA) setup in payroll to capture staff exempted from paid sick leave.
  4. Document actual COVID-19 case counts (will require COVID-19 yes/no flag setup.)
  5. Document presumptive COVID-19 cases for any patient not confirmed, but likely, due to presented symptoms when testing isn’t available (will require Presumptive COVID-19 flag.)

A few steps now can go a long way to position one’s organization with a proper accounting of the financial impact due to COVID-19. As we begin to emerge from the initial shock, it will become much clearer what the impact is to the US healthcare market overall. Funding is currently available, and more will become available over time.  If the virus has had a significant negative impact to one’s bottom line, a proper account of that effect will be essential in soliciting relief. 

 

Tim Thomas serves as the Director of Financial Systems for Engage. He leads a large team delivering quality Meditech Expanse implementations, revenue cycle performance improvement projects, enterprise resource planning (ERP) solutions and is also a key hospital CFO Liaison.

Tim has over 35 years of healthcare financial expertise with a special focus on the revenue cycle, maintaining its integrity and optimizing financial performance.


 

 

 

 

 

 

To subscribe to our blog, please fill out the information below.






For more information on Engage services, call us at (509) 232-8301.