Leaders of major hospital system Tenet shared that its facilities in Arizona are not overwhelmed despite a drastic rise in COVID-19 cases and hospitalizations.
The 65-hospital system shared an update on patient volume and liquidity over the past few months as the system has been wracked financially by the COVID-19 pandemic. The system said patient volumes are beginning to recover after plummeting in March at the onset of the pandemic but have not returned to pre-COVID-19 levels.
“Arizona is an example where we, in a disciplined way, are learning how to manage these patients. We are busy with COVID but we are not overwhelmed with COVID,” said CEO Ron Rittenmeyer on the call.
Arizona is one of several states that have seen cases rise as economies start to open back up. But Tenet said that it has not stopped doing elective procedures in the state.
“We continue to do very well on the elective side in Arizona and managing those two tracks in parallel right now,” Rittenmeyer said. “We are busy, but we are not overwhelmed.”
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In the first half of June, hospital admissions have recovered. Admissions systemwide are now at 90% compared to the same period in 2019.
Outpatient and emergency room visits also have recovered but still lagged compared to the prior year.
Hospital surgeries also in the first half of June were at 95% compared to the same level in 2019.
The system is also pleased with the labor and supply cost trends, noting personal protective equipment costs have moderated.
“We still don’t like the levels they are at, but they are not quite as egregious as it was in the … early April and March time frame,” Rittenmeyer said.
As of Monday, the system had $2.6 billion in excess cash on hand. But the system has to repay $1.5 billion to Medicare that was received in the form of advance payments. Tenet noted that the money must be repaid by early April 2021.