◆ Economic impact of pandemic is widespread.

Life in a pandemic requires a lot of adjustments for area families and businesses. Star Valley Health is not exempt, according to CEO Bren Lowe.

“The current crisis has impacted all of us in unprecedented ways,” he said. “It’s disruption to institutions and the economy are proving to be even more immediate then the great depression.”

According to Lowe, as the coronavirus sweeps across the U.S., most “hospitals are facing financial struggles due to the pandemic.”

“Rural healthcare [facilities] were in crisis prior to the pandemic; more rural hospitals closed in 2019 than in any other year,” he said. “Rural hospitals operate on thin margins due to the continued decrease in reimbursement from Medicare and Medicaid in addition to more care not being compensated at all. Most of the margin for rural hospitals comes from elective services such as surgery, laboratory testing and radiology imaging.”

“In recent weeks, the Centers for Medicare and Medicaid (CMS) advised the halt of elective procedures in an effort to preserve supplies and free up clinical providers for fighting COVID-19,” Lowe continued.

“These elective procedures and outpatient visits are the lifeblood for many rural hospitals and for Star Valley Health account for more than 60 percent of its revenues.”

According to Lowe, rural hospitals, on the whole, will see “coronavirus patient surges three to six weeks later than metropolitan communities, yet had to stop elective procedures at the same time as urban hospitals.”

“Rural hospitals are now seeing a steep decline in activity and loss of revenue,” he said. “Star Valley Health is estimating monthly losses between $3,500,000 and $4,000,000 per month through the first of June.”
According to Lowe, Star Valley Health leadership preparations for COVID-19 included “reviewing the economic impact to the organization and community.”

“Actions have been taken over the past few weeks to evaluate all possible options,” he said. ““We have prepared for the COVID-19 pandemic to reach Star Valley, following the guidelines set in place by the Centers for Disease Control and Prevention (CDC) to protect our community and staff while working to keep the organization viable.”

According to Lowe, many Star Valley Health employees including physicians and leadership have “already voluntarily chosen to cut hours or taken salary reductions to help reduce expenses.”

This week Star Valley Health started the process of “reducing or eliminating worked hours for up to forty staff for the next two months.”

“These employees will continue to be eligible for health benefits, can utilize their paid leave time to supplement their income and apply for unemployment,” Lowe said.

According to Chad Turner, Star Valley Health’s Chief Financial Officer, “the $2.2 trillion dollar stimulus package that was passed at the federal level may not provide much financial relief for Star Valley Health.”

“We are reviewing the information and participating in conference calls to learn all we can,” Turner said. “To date, we have received a $90,000 grant. The $100 billion dollars allocated to the hospital fund will be distributed by the Health and Human Services Secretary to 25 different agencies that work with health care organizations. There are minor details on this process but it is feared the funds will only mostly be directed to the COVID-19 hot spot hospitals.”

Even with tough decisions being made at the hospital, the Star Valley community continues its well-known generosity, Lowe said.

“The auxiliary and volunteers are making cloth masks which will be used by patients, visitors and non-clinical healthcare works,” he said. “The school district has assisted with 3D printed reusable masks and many other groups have donated medical supplies.”

Donations made to the Star Valley Health Charitable Foundation will go directly to areas of greatest need during this pandemic, Lowe said.

More information can be found on Star Valley Health Foundation’s dedicated COVID-19 web page at starvalleyhealth.org/foundation/.

“Without question this is a challenging time for our country, state and community,” Lowe said. “Star Valley Health is doing everything in its power to be prepared to care for this community today and well into the future.”