New US hospitals face fiscal crisis over COVID relief money

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New US hospitals face fiscal crisis over COVID relief money
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A handful of U.S. hospitals are facing a financial crisis that officials say was caused by the federal government's rules for pandemic relief money.

ABC News’ Kayna Whitworth speaks to author and ProPublica’s Reporter J. David McSwane about his book “Pandemic Inc.: Chasing the Capitalists and Thieves Who Got Rich While We Got Sick.”THOMASVILLE, Ala. -- A whole town celebrated in 2020 when, early in the coronavirus pandemic, Thomasville Regional Medical Center opened, offering state-of-the-art medicine that was previously unavailable in a poor, isolated part of Alabama.

Employees are trying to save money by cutting back on supplies but residents including Judy Hutto are worried about the hospital's future. Hutto drove there recently for tests from her home 15 miles out in the country.CEO Barry Beus also is trying to plug a gap at Rock Regional Hospital, located south of Wichita in Derby, Kansas. The hospital is due as much as $15.

“HRSA has strived to provide as much support as possible to as many hospitals as possible within the limits of the law and funding,” he said. The agency said it used proxy financial information for hospitals that opened in 2019 or 2020 to create an equitable payment system.While virtually all the aid money is spoken for, Lundquist said hospitals seeking additional aid can go through an appeals process.

Located in southwest Alabama, Thomasville lies within an impoverished area called the Black Belt. About 70% of Black Belt residents qualify for Medicare or Medicaid, andThe last hospital shut down in Thomasville more than a decade ago, leaving only hospitals that offer fewer services in the surrounding region.

Patients stopped showing up for scans, elective surgeries, mammographies and other moneymaking services because of pandemic shutdowns, and financial reports that looked promising turned perilous within weeks.

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