Cullman Regional adjusts to coronavirus pandemic costs

Published 4:30 pm Friday, April 3, 2020

Cullman Regional CEO James Clements speaks about the hospital’s recent expansions at the Cullman Area Chamber of Commerce’s Community Luncheon in Oct. 2019.

Cullman Regional is making some significant changes aimed at controlling costs as the hospital begins to feel the financial crunch of the coronavirus pandemic — not because of a surge in coronavirus patients (currently, the hospital reports it has only two patients who’ve tested CIVOD-19 positive), but because of a combination of other factors.

In a statement sent out to media on Friday, CEO James Clements said the effects of the pandemic — both on global financial markets as well as on Cullman Regional’s dip in patient census locally — are taking a toll on the hospital’s bottom line.

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“As healthcare professionals, we are used to pulling together as a team in a time of crisis,” Clements said. “But this is unlike any situation we’ve experienced before.

“…“We are currently in a tough financial situation. The reduction in the type of business that pays us the best, elective surgeries and outpatient imaging, means we have to make hard decisions quickly in order to keep our organization moving forward through this challenging time.”

That means tapping the brakes on new construction projects, as well as a reduction in staffing hours for some employees who work in non-patient-facing or elective areas.

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“In order to meet the current needs, the hospital has implemented a plan to get through the next 30-days,” the hospital said in the statement.

“Effective immediately, all construction projects are on hold other than the infrastructure project already in progress. This project must be completed by summer in order to ensure adequate air conditioning throughout the facility during the hot summer months.

We have developed an operations plan that we will be managing daily in order to ensure we are matching worked hours with the volume of patients currently in our facility. The largest impact of this will be team members in support departments and elective areas. Staffing in patient care areas, particularly in areas serving our most critical patients, will not be compromised.”

Staff affected by the changes are being extended “a variety of assistance” measures, said the hospital, “including a continuation of health insurance benefits, free daycare for team members as space allows, and informational meetings to help team members access federal assistance programs during this time.”

Part of the staffing reduction also stems from a lower-than-normal overall patient count, even as the hospital treats two COVID-19 coronavirus patients (as of Friday), and stand ready with equipment and staffing to treat as many as 30 COVID-19 patients, if the need arises.

“The challenge is that the need is not currently at Cullman Regional. As of the morning of April 3, the hospital has two patients with a positive COVID-19 diagnosis including one on a ventilator, although several other patients are awaiting results,” the hospital said.

“In fact, the hospital is seeing approximately 20% fewer patients today than they were just two weeks ago, and approximately 80% fewer patients in all outpatient areas of the hospital. This, compounded with an increase cost of treating COVID-19 as well as the cost of stockpiling supplies in order to prepare for a possible influx and losses from financial investments, are making hospital operations more than challenging.”

Cullman Regional emphasizes that its cost-saving measures and day-by-day assessment of operations have been designed specifically to keep the focus on patient care, and that the changes do not scale back or otherwise affect patients’ access to non-elective medical services — including treatment for COVID-19. “We hope the community knows and understands that we are ready, if the need arises,” said Clements.