COVID Chronicle

THE HEALTH OF OPERAT IONS AMID COV ID- 19

Pausing Services On March 17, 2020 we paused elective surgeries and procedures under the guidance of the American College of Surgeons. Patient volumes declined immediately and significantly with admissions, emergency department, diagnostic testing, and provider office visits all down approximately 50%. Net patient service revenue for March was below budget by $26m (17%) and $66m (45%) in April resulting in large operating losses.

Financial Assistance from CMS The Centers for Medicare and Medicaid Services

stepped up to help rural hospitals with multiple components: • Funding Advance: six months of historical claims payment to be repaid over the course of a year after 120 days, for Northern Light Health this was $175M • CARES Act Grants for Northern Light Health, this was $65M • HRSA Grant for Northern Light Health, this was $422k The state of Maine funding also distributed funding of $2.5M.

Additional Steps Northern Light Health took additional steps to shore up our financial foundation by expanding our line of credit with three banks by $120M, with total lines of credit of $150M; reprioritizing and restricting capital spending; and advocacy through continuous contact with AHA, MHA, and DHHS.

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