BHS expecting deficit for 6-7 months
Butler Health System officials are anticipating operating at a deficit for six or seven months into 2021 battling a loss of an estimated $15 million.
The health system, which employs 3,000 people, announced Monday night it would lay off 57 positions, furlough 10 others and close down its skilled nursing facility at Butler Memorial Hospital.
“There is nothing more painful than affecting someone's job and their livelihood,” said Ken DeFurio, president and CEO of BHS, in a call with the news media Tuesday. “It was incredibly hard to go through that exercise.”
DeFurio said BHS would welcome former employees to apply for positions as they become available in the future.
The skilled nursing facility slated for closure is housed in the hospital and used for short-term recovery for patients, often involving additional physical and occupational therapy before a patient is released home.
“We've struggled with that service for a long time, and there are certainly a number of other service providers in the community who can handle that care,” DeFurio said.
DeFurio said the health system saw about $35 million in losses since the COVID-19 pandemic. He said this was offset by some CARES Act funding, but even after the relief funding, the hospital is looking at about $15 million in losses.
In April, the state released $1.25 billion in CARES Act funding specifically for hospitals and health care providers.
He said the regional health care system — which encompasses two hospitals, Butler Memorial Hospital and Clarion Hospital — has been operating at about 70 percent of its normal volume recorded before the pandemic.
“It's easy to sit here today and forget what it was like in the middle of March,” DeFurio said. “I anticipate coming out of this standing strong.”
The joint news conference call was hosted by the Hospital and Healthsystem Association of Pennsylvania.
“We're asking policy makers to take note of the fact that this crisis is upon us now, it's unpredictable moving forward and we should act swiftly to take care of these health care organizations,” said Andy Carter, president and CEO of the association.
James Brexler, president and CEO of Doylestown Health, gave a perspective from the eastern part of the state.
“One of the first two (COVID-19) cases (in the state) was swabbed here in Doylestown,” Brexler said.
Brexler said his health system quickly began shutting down its discretional care and elective procedures, much like BHS. He said at its worst, his system saw 55 COVID-19 patients at one time.
“We are now on the back end of that, and we're getting back to business,” Brexler said.
Doylestown Health has yet to lay off workers, but Brexler understands the decision made by BHS. He said it might be something his own system has to look at down the road.
“We're all treading in some very challenging waters,” he said.
DeFurio said although Monday's news was negative, he remains optimistic about the future. He said the panel of physicians who provide COVID-19 guidance will continue to meet regularly because the pandemic is not over until a vaccine is developed.
“Some of that challenge continues through today,” DeFurio said. “All hospitals are feeling strain in how they move forward while staying healthy.”
Carter said the association hopes on behalf of all the state's health systems that more CARES Act funding will be allocated to hospitals and health networks.
“Organizations like Doylestown and Butler are true economic anchors for their communities,” Carter said. “As anchors, they serve the commonwealth in economic stability.”
