• Talking Points
  • May 22, 2020

Support Children’s Hospitals in COVID-19 Emergency Relief

  • We urge Congress provide additional direct relief to health care providers, including $10 billion specifically for children's hospitals. While we are still learning how COVID-19 impacts children in the short- and long-term, the COVID-19 response is producing major negative financial, supply and clinical staff impacts on children's hospitals. We applaud recent congressional efforts to help address these unprecedented challenges. We urgently need more help: the COVID-19 relief allocations provided by Congress and HHS to children’s hospitals to date have mitigated only a portion of the negative impact, and the need for relief grows daily.
  • Children's hospitals are experiencing catastrophic financial damage from the COVID-19 crisis. In standing with America's national COVID-19 surge response, children's hospitals deferred pediatric care and experienced significant drops in volumes related to local and federal stay-at-home guidance. America's children's hospitals have experienced an over 40% decline in revenues and are currently incurring approximately $2 billion in losses per month. Children's hospitals have and continue to experience $10 billion in negative cash flow over recent and the coming several months. Even as health care begins to reopen across the country, recovery is expected to be slow. Combined with higher costs to screen, test and protect health care staff, patients and families, the COVID-19 pandemic threatens the essential role children's hospitals play in the future of our country.
  • Children's hospitals cannot sustain losses of this magnitude without relief funding. Children's hospitals are not-for-profit, community-benefit organizations, and Medicaid is the payor for more than 50% of all patient volumes. Children's hospitals don't care for older adults and cannot benefit from remediation provided through Medicare, either in the form of relief from the sequester, increased reimbursement for COVID-19 patients or access to Medicare advance payments. Many of our losses and additional expenses will not be reimbursed through these otherwise important relief supports to all hospitals.
  • Continued financial damage to children's hospitals will adversely impact the health and well-being of all children. Children's hospitals care for the most acutely ill children. As the only providers of the most complex pediatric cancer, cardiac, trauma and care for chronically and acutely ill infants and children, children's hospitals are effectively the provider for millions of children in need. As academic hubs of pediatric training and research discovery, children's hospitals impact access to care for all children. Children's hospitals are unique institutions, making educational and life-saving contributions that cannot be replaced.