Aspen (Colo.) Valley Hospital decided not to seek forgiveness of an $8.2 million Paycheck Protection Program loan because it does not meet forgiveness requirements, The Aspen Times reported April 15.
The hospital said nearly all of the $8.2 million went toward its intended purpose — maintaining staffing levels without laying people off.
The decision to repay the loan was made because Aspen Valley Hospital had a break-even year in 2020 and could not prove it was experiencing the financial strain necessary for loan forgiveness, according to Aspen Valley Hospital CEO David Ressler.
In 2020, the 25-bed public hospital received $7 million through the Coronavirus Aid, Relief, and Economic Security Act stimulus package, $13 million in accelerated and advance Medicare payments and $2.1 million in unprojected revenue from the Aspen Valley Hospital Foundation, according to The Aspen Times.
"[W]e have significant capital demands. None of those are the purpose of the funds, unfortunately," Mr. Ressler said. "Our recommendations are based on what the funds are intended for and what the requirements are associated with them."