Two Colorado hospitals that ran short on cash in recent months attributed the need to repay Medicare for interest-free loans received at the beginning of the pandemic as one factor, per Becker’s.
Leadville, Colo.-based St. Vincent Hospital came close to closing before receiving funds from the state and Lake County in December, and Delta (Colo.) Health said nearly all of its cash was committed to paying off the debts at the end of March, according to the report.
Delta Health said last week that it was “on the right track” after it received a $653,060 advance from the state that allowed it to pay off another loan, freeing up funds for day-to-day needs.
Estes Park Health CEO Vern Carda said the Medicare advances were important early in the pandemic, allowing the hospital to keep paying employees and cover routine expenses and until patient volume rebounded, according to the report.
