North Carolina’s wealthiest hospitals record profits after receiving COVID relief funds

In accordance with a report launched by the state treasurer’s workplace on Wednesday, June 22, seven of North Carolina’s largest hospital techniques made billions of {dollars} in revenue in the course of the COVID-19 pandemic, whereas additionally claiming one other $1.5 billion in taxpayer-funded reduction.   

The evaluation, which was carried out by the State Well being Plan and the Nationwide Academy for State Well being Coverage, examined the audited monetary experiences of Atrium, Novant, UNC, Duke, Vidant, Cone, and WakeMed Well being. The examine was additionally peer reviewed by Dr. Ge Bai, Professor of Well being Coverage & Administration at Johns Hopkins Bloomberg College of Public Well being, and Professor of Accounting on the Carey Enterprise College.  

Based mostly on the report, these seven hospital techniques documented a file $7.1 billion in progress in money and monetary investments from 2019 to 2021, after amassing a collective $5.2 billion in internet earnings in 2021, taking the aforementioned COVID-19 reduction help, and accumulating an extra $1.6 billion in Medicare and Accelerated and Advance Funds from 2020 to 2021.   

Along with noting how these hospitals acquired reduction funds put aside for struggling hospitals, it additionally particulars how they “did not dedicate greater than a fraction of their windfall to growing charity care for his or her struggling sufferers.”   

After claiming the majority of the COVID-19 reduction funds, the rich hospitals recorded such an enormous progress in money and investments that it surpassed the state’s allotment for Ok-12 training. Duke Well being alone exceeded the typical internet revenue margins for tobacco and funding banking in 2021.   

Out of the seven, Atrium Well being took essentially the most taxpayer reduction {dollars}, accumulating $589 million in COVID reduction and one other $438 million in Medicare advance funds. Atrium Well being then made a $1.7 billion internet revenue after its merger with Wake Forest Baptist Well being in 2021.   

“Some issues are value getting mad about. The hospital cartel is utilizing taxpayer {dollars} to assist crush the center class and rob lower-income households of upward mobility,” mentioned State Treasurer Dale Folwell. “Rich hospitals took billions of taxpayer {dollars} meant to guard struggling hospitals — after which some billed poor households and even sued sufferers.”  

Folwell is just not the one one troubled by the small print of the report, as a number of different specialists have additionally weighed in with considerations {that a} disproportionate distribution of reduction funds may result in hospital value inflation and additional consolidation. Folwell is personally calling on every of those hospital techniques to return the cash, or no less than use their earnings to decrease prices for his or her sufferers and improve charity spending.   

Regardless of the substantial figures recorded by every of the hospital techniques, the report reveals that charity care spending fell throughout a 3rd of hospitals in 2020. In the meantime, native communities struggled with financial lockdowns, job losses, and the unfold of the coronavirus.  

“Hospital executives made file earnings off of the backs of sick folks in the course of the pandemic and many years earlier than,” mentioned Folwell. “We now have an obligation to make well being care inexpensive for North Carolina households. We now have an obligation to carry hospital executives accountable for wrecking the monetary well being of 1000’s of sufferers and transferring wealth from residents to them.”