While two Colorado hospitals faced debilitating cash crunches when they had to repay interest-free loans from Medicare, others said the cash advances from the federal government were a lifeline at the beginning of the pandemic.
On Wednesday, Delta Health announced it was “on the right track” following a $653,060 advance from the Colorado Department of Health Care Policy and Financing. Interim CEO Julie Huffman said the advance allowed it to pay off another loan, freeing up cash for day-to-day needs. The hospital won’t need to pay the state back, but since it received that payment early, it won’t get one at the regularly scheduled time later this spring.
Sheli Steele, spokeswoman for Memorial Regional Health in Craig, said the hospital’s advances also stayed in the bank. Memorial Regional actually hosted more surgeries than usual at some points, when larger hospitals couldn’t perform nonemergency procedures, and also benefited from other stimulus funding and paycheck protection loans, she said.
All of the Colorado recipients repaid their advances, and as of Nov. 30, so had about 99% of recipients nationwide. The repayment schedule was set by law, so it wasn’t possible to delay collections when costs started rising, a Centers for Medicare and Medicaid Services representative said.
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