The pandemic is a leading cause of Augusta (Ga.) University Health System providing $183 million in charity care for patients who could not afford to pay for services. Now, the system is reporting a $20 million loss for the first nine months of its fiscal year, according to an April 23 Augusta Chronicle report.
At an April 22 board of directors meeting, Chair Jim Hull said the health system "leads the fight as we live with COVID-19." However, charity care hit AU Health hard, and the hospital reported a $38.7 million operating loss in the first nine months of the fiscal year.
During the pandemic, AU Health added $29 million in salary and wages, $7 million in employee benefits, $7.4 million in supplies, and an additional $5.6 million from drugs and pharmaceutical supplies. Even with $18.7 million in investment and non-operating revenue, the hospital still reports a $20 million loss.
The health system's CEO, Katrina Keefer, said she has a $40 million plan to cut costs and increase revenue.
"We don't anticipate [layoffs] at this point but we are looking at open positions, vacant positions and rethinking the way we deploy our existing staff to accommodate the volumes we have," Ms. Keefer said.
Ms. Keefer said a key piece will be to reduce contract nurses as new graduates enter the nursing ranks. AU Health will also reduce other hospital personnel the health system added to aid during the pandemic.
Even with losses, the health system did have $26 million in revenue growth compared to the previous year.
"We are one of the few places that is still continuing to grow our revenue despite the pandemic," Ms. Keefer said.
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