“The situation is dire. It’s immediate,” said Joseph Marchant, chairman of ALhospitals and CEO of BibbMedical. “There’s an immediate need. We hope [the Legislature] considers soon, the fragile state of where we are.”
Healthcare leaders on Thursday said Alabama hospitals need additional COVID relief funds from the Alabama Legislature just so hospitals can make payroll and some can avoid closure.
“If it had not been for that federal funding, we probably would have fewer hospitals today,” Williamson said. “What we desperately need is a significant infusion of [American Rescue Plan Act] funds to serve as a bridge.” “We’ve got to have ARPA funds so that we can have all of our hospitals make payroll now,” Williamson said. He said hospitals can cut expenses, but that will reduce revenue. “It’s a death spiral,” he said.The report detailed a $1.5 billion loss in income for the state’s hospitals, including hospitals in both rural and urban areas.
That includes both salaried and contract labor - the latter of which, while comprising only 10% of the hours worked at state hospitals, accounted for roughly 25% of the increase in labor costs last year.
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