Bristol Health is seeking donations from the community to help build its depleted cash reserves as a result of the COVID-19 pandemic.
The community-owned hospital was created in response to the influenza outbreak of 1918, but saw its finances hard-hit more than a century later by the peak COVID pandemic years, in part due to several million dollars of federal loans that need to be paid back.
“That money started to be taken out of organizations’ Medicare payments,” said Kurt Barwis, president and CEO of Bristol Hospital and the health network. “So if you provided a Medicare service, almost two years ago, they started taking it back at a rate of 25% of your payment. And then that went up to 50%. And then, ultimately, if you didn't pay it back … it got transformed into a 60-month loan.”
The federal government was taking back cash even as hospitals were going through the loan application process, leaving the health system’s cash flow strained, he said.
So the hospital system is turning to the community for help.
In a fundraising letter to the community obtained by Connecticut Public, Barwis said the health system, which includes a hospital and over 100 provider networks in 20 locations in Connecticut, has until September to build up its cash reserves to meet the requirements of bond lenders.
“I'm hoping to reach individuals who have had great experiences in our organization, who feel really comfortable giving to us and supporting us, and helping us regain our balance sheet and financial stability so that we can be here for another 100 years,” Barwis said.
Despite being cash strapped, Barwis said Bristol Health is on track to break even this year following sharp cuts on expenses. He hoped to raise $1 million from donors in the community, which is two days worth of on-hand cash.
