In March, when COVID-19 emerged in New Hampshire, our hospitals and health care providers did the right thing. They shut down their services solely to elective procedures, resulting in massive revenue losses. Surge centers were developed in order to ensure that our hospitals were not overrun. The appropriate steps were taken by all, despite the very real risk, and now reality, of massive financial loss.
On March 19, Gov. Chris Sununu issued Emergency Order No. 9 , which established the COVID-19 Emergency Healthcare System Relief Fund. This $50 million fund was created with the purpose of providing “emergency relief to all aspects of the New Hampshire health care system, and to promote and secure the safety and protection of the people of New Hampshire.”
The original intent of the program was to alleviate the immediate financial needs of health care facilities on the verge of catastrophe. The relief funds were meant to support hospitals that were necessary in preparing for a possible surge and aid health care providers whose practices had drastically changed – and in some cases closed – almost overnight.
By the end of March, over 250 New Hampshire health care organizations applied for relief funding. Those organizations range from single provider practices to large-scale regional hospitals. But in the past seven weeks, only 54 of those organizations have received funding – totaling $21 million, less than half of the total funds available.
We have heard from some hospitals that chose not to apply for funding through the program, either because they realize there are others that may be in more immediate need of help or from the uncertain nature of the money. In its creation, funds allocated from the original $50 million were to be treated as zero-interest loans, not grants, although the executive branch has since said the governor can transition them to grants if he wants.
For smaller practices already bearing the financial burden of closure, taking on additional debt was not an option.
We have also heard from many others from across the health care spectrum that they had applied for funds and are still waiting for an answer. Over 200 health care providers are still waiting to hear if the state will grant them emergency relief. Seven. Weeks. Later.
In the early days of this crisis, and every day since, we have heard from the governor’s administration their desire to work quickly to get people the financial help they need. Gov. Sununu went so far as to cut the Legislative Joint Fiscal Committee out of the process because he didn’t think a legislative body could “move at the speed” of the governor’s office. Why then are over 200 health care organizations charged with the protection of our public health and safety, who have followed state guidance at great personal loss, still waiting for emergency relief?
Information regarding the process by which applications are processed and accepted has been requested on multiple occasions, but little has been provided. Information has been requested on how many organizations are still under consideration, but none has been provided. With nearly $30 million still available and over 200 organizations in immediate need of help, this information needs to be made transparent to assure the public that our health care system will hold together, despite the overwhelming strain.
There is no question that difficult problems require complex solutions. Decisions are being made on a nearly hourly basis as we all work to navigate the unprecedented challenges facing our state. In testimony provided to both the Legislative Advisory Board and the Stakeholder Advisory Board, we have heard the fears of smaller practices that may not be able to reopen due to fixed expenses and significant revenue loss.
It is critical that these funds are disbursed quickly and efficiently to ensure Granite Staters are not left without their care providers.
These organizations need to know the status of their applications. There needs to be immediate clarification as to if the funding will be made as a grant or a loan. The public needs transparency in how money originally pulled from the general fund has been spent and how CARES Act funding is being distributed.
We appreciate the governor’s desire to move quickly. But we are concerned that when emergency action was needed for these hospitals and health care providers, Gov. Sununu hasn’t acted quickly enough.
(Sen. Cindy Rosenwald of Nashua represents District 13 in the N.H. Senate. Rep. Sharon Nordgren of Hanover represents Grafton District 12 in the N.H. House of Representatives.)