U.S. Hospitals Pushed to Financial Ruin as Nurses Quit en Masse
Bloomberg via MSN Money
The U.S. health-care profession is suffering its own Great Resignation, pushing more hospitals into financial distress just as a winter surge of the coronavirus hits.
Across the country, hospitals are buckling under the strain of nursing shortfalls and the spiraling cost of hiring replacements. For Watsonville Community Hospital on California’s Central Coast, those costs became too much to bear, and contributed to the facility’s bankruptcy this month, according to a person familiar with the situation.
EDITOR’S NOTE – Watsonville CA has possibly the highest percentage of ILLEGALS in the entire state North of the MX border. Agricultural community with about 84% hispanic residents.
The shortages are most acute at hospitals like Watsonville that rely on government funding to treat poorer patients, since they have fewer resources to compete against the rising cost of keeping staff. The situation adds to the stress facilities have already experienced responding to the early onset of the virus, just as the last of federal aid is being doled out.
“This is like survival stakes,” said Steven Shill, head of the health-care practice at advisory firm BDO USA. Winners are “whoever’s highest on the food chain and who has the biggest checkbook.” The staffing companies — agencies that provide nurses and other staff on a temporary basis — are “really, really, really gouging hospitals.”
Saint John’s Episcopal Hospital Chief Executive Officer Jerry Walsh has been on the losing side of those battles, beat out by larger, wealthier systems while laying out thousands of dollars a week more to pay what he calls “exorbitant” rates to outside agencies to keep his hospital properly staffed. St. John’s, in a remote corner of Queens, treats some of the city’s poorest and sickest patients and relies mainly on less-lucrative government-insured patients.
“This is the worst nursing shortage that I have witnessed in my career,” Maureen May, a 30-year veteran of the pediatric ICU and the president of the Pennsylvania Association of Staff Nurses and Allied Professionals, a union, said in an interview.
The issue is emerging in the capital markets, too. Aveanna Healthcare Holdings Inc. went public in April in an effort to expand beyond its leading position in pediatric home health services. But a shortage of caregivers has pummeled its stock, while credit raters gave a debt issue to fund acquisitions low-tier junk level assessments.
Header featured image (edited) credit: Watsonville CA Community Hospital Twitter Grab
Emphasis added by (TLB) editors
Stay tuned to …
The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)
Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.
Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.
Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.