■ Accounting , Banking & Law
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Withum By Domenic Segalla , Healthcare Advisory Principal
With the onset of the pandemic , hospitals and healthcare providers were facing a huge financial crisis . Costs were increasing due to the demand for PPE and additional staff , while revenues were decreasing from the temporary postponement of all elective surgical procedures . This combination of increased costs and decreasing revenues had a direct negative impact on the respective entities ’ cashflow . The Provider Relief Fund ( PRF ) of the CARES ACT provided up to $ 175 billion of funds for disbursement , segregated into different tranches . Our client was a standalone urban hospital eligible for CARES dollars that needed assistance to determine if receiving and maintaining the dollars made sense — based on the restrictions outlined in the attestation that must be executed upon receipt of the PRFs . We advised , discussed and outlined in detail how PRFs are to be utilized , what expenses and lost revenues can be subsidized and , most important , how to track , account for and support the PRFs to allow for accurate and timely mandated reporting of spending . Based on the great advice we provided our client , they kept the funds , signed the attestation and had a significant increase in cash on hand to alleviate some of the short-term financial burdens they endured .
BANKING
Peapack-Gladstone Bank . By Douglas L . Kennedy , President and CEO
We have a client that is not a healthcare client , but COVID‐19 pushed his business into a new space to support the healthcare industry in a profound way during the pandemic . We were approached by a party rental client early on , who conveyed that he was nearly ready to close his business due to COVID‐19 . He had shut down one office in New Jersey and went from 18 fulltime employees to six . Our bank was able to help him secure a PPP loan in order to keep his business open because he was deemed an “ essential business ” during the pandemic . Why ? His rental business provides the outdoor tenting and propane heating for COVID‐19 testing facilities within the state . He is responsible for seven total locations . Receiving the PPP funds allowed him to hire back his employees and continue working while he waited for payments from the testing facilities . He is now back fully staffed . In a fun twist , our client ’ s balloon business literally soared because of all the drive-by birthday celebrations — he couldn ’ t keep
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