Monticello Community Surgery Center in Crozet, Va., is essentially shuttered. The multispecialty facility went from performing 115 cases in one week in March to five the next week, says CEO Andy Poole, FACHE. The facility's physicians are
performing only emergent procedures such as repairing detached retinas, fixing fractures and removing cancerous lesions. Staff members are working on securing an emergency loan needed to ensure the center's 30 full- and part-time employees
keep getting paid.
"It's been a big hit financially," says Mr. Poole. "We know the case volume will eventually return, but we need a way to take care of our employees, so they'll survive in the meantime."
To that end, Mr. Poole and other surgery centers around the county turned to the emergency Coronavirus Aid, Relief, and Economic Security (CARES) Act, which appropriated $350 billion for small businesses to keep employees on the payroll.
Under the CARES Paycheck Protection Program, the U.S. government will guarantee the loans to small businesses who maintain their payroll during the COVID-19 emergency and will eventually forgive 100% of the principal amount borrowed.
Mr. Poole hopes the CARES loan will last until Monticello can reopen. When that happens, he plans to take advantage of the CMS Accelerated Payment Program, which Congress expanded for the duration of the current public health emergency. Facilities
such as Monticello can apply for up to 100% of the Medicare and Medicaid reimbursements they would have normally received for three months, and can be repaid over time.
"The CARES loan is for now and the accelerated CMS payments are for when we re-open," says Mr. Poole. "Then we'll have to explore the possibility of using FDA loans to avoid having to dip into our cash reserves."
The past few weeks have seen a sharp drop-off in volume at most surgery centers, reports Mr. Prentice, who says COVID-19 "has created true economic harm and left facilities flat-footed right now in terms of being able to provide care." He
hopes the federal CARES Act and the funding contained in it will be used to provide funding to surgery centers immediately, so they can retain staff and pivot to these new, volatile market and public health conditions, while also being
able to take care of patients who postponed elective surgeries once restrictions are lifted.
"There are a variety of options available to get some liquidity from the CARES act," says Mr. Prentice. "We just want to make sure all of those options are available for surgery centers so they can get the funding they need to stay open, and
have the equipment and staffing to be able to provide the care that we all know they're going to need to provide as this pandemic worsens."
Greg DeConciliis, PA-C, CASC, is feeling the stress of an uncertain economic future. "Not knowing when it's going to end is the worst," says the administrator of Boston Out-Patient Surgical Suites in Waltham, Mass. "We won't be able to take
care of our staff forever. Then, when we do reopen, who knows if the elective procedures that were postponed will get rescheduled by the patients. On the other hand, we're also worried that if everyone does reschedule, we'll be faced with
a backlog of cases our facility won't be able to handle."
Ms. Hogan has contacted the firm that handles the regular maintenance of her facility's fleet of endoscopes. With no cases being performed for the foreseeable future and therefore no need to maintain the scopes, she worked with the company
to renegotiate the contract's monthly fee.
Few if any outpatient surgery centers envisioned a de facto national shutdown such as this, let alone planned for it, says Mr. Poole. "There's a lot of preparing for contingencies in this industry," he says. "But if any center was ready for
this one, all I can say is, 'Man, they're good.'"