Struggling hospitals and those hardest hit by COVID-19 should get more federal funding than nonprofit hospital systems with large endowments, patient safety advocates and other critics say.
An analysis for USA TODAY by OpenTheBooks.com shows the 20 nonprofit hospitals ranked by investments reported more than $116 billion in investments, including endowments. And although flush with money, critics say the tax-exempt systems also failed to adequately invest in basic emergency planning before the pandemic.
“Many large hospitals already have the ability to reprogram or redirect funds,” said Adam Andrzejewski, founder and CEO of Open the Books, a nonprofit transparency advocacy group. “They need to explain to patients and front-line health workers why they have or have not done so.”
The first $30 billion in COVID-19 hospital assistance money was based on Medicare billings, so those 20 nonprofit systems ranked by Open the Books were among the hospitals receiving the biggest share.
The federal government’s decision this month to send $22 billion to rural hospitals and those hardest hit hardest by COVID-19 partially satisfied critics who charge Washington is rewarding wealthy tax-exempt hospitals that planned poorly for viral emergencies. But as nearly $50 billion more is about to be divvied up, advocates for struggling hospitals say help for well-endowed nonprofit hospital systems should be scrutinized.
“The money going to hospitals is not free, it comes off the backs of American workers, over 10% of whom are unemployed,” says Dr. Marty Makary, a Johns Hopkins University public health professor, patient safety advocate and author. “The hospitals who need it should be prioritized, not those with billion-dollar endowments and large cash reserves that provide little charity care. Not all hospitals function similarly.”