The Hospital and Healthsystem Association of Pennsylvania (HAP) recently urged Gov. Tom Wolf to relieve hospitals of revenue shortfall caused by the COVID-19 pandemic by making available Quality Care Assessment (QCA) payments totaling $500 million.
QCA payments are quarterly state assessments of hospitals based on net patient revenues. During the first- and second-quarter assessments of 2019, the hospitals were paid $500 million. The third- and fourth-quarter QCA payments are scheduled for May and June.
“The COVID-19 pandemic has already taxed Pennsylvania’s hospitals, and now the upcoming assessment payments will only exacerbate a developing financial crisis,” HAP President and CEO Andy Carter said. ”We immediately need the state to work with us and cover these payments so hospitals can fight COVID-19 today and carry out the mission of providing care for patients tomorrow.”
If the payments are not made when scheduled, there are no federal funds available to cover the shortfall.
HAP estimates at least a 40 percent revenue loss for hospitals in the first quarter of 2020.
Wolf said Friday a $450 million loan program would be available for hospitals with a cap of $10 million per loan at an interest rate of 0.5 percent.
HAP urges the state to establish a Healthcare Coronavirus Emergency Response Fund of $1.5 billion for health care providers.