ACCOUNTING , BANKING & LAW
Navigating COVID‐19 ’ s Impact : Advice for Healthcare Clients
The financial toll of the pandemic looms large .
Compiled by Miles Z . Epstein Editor , COMMERCE
How has your advice to healthcare clients
changed since the COVID‐19 pandemic ?
Can you please provide an example of guiding a healthcare client in the new normal ? COMMERCE posed these questions to experts from New Jersey ’ s top accounting firms , banks and law firms . Here are their insights , advice and observations .
ACCOUNTING
Citrin Cooperman By Aaron Cohen , J . D ., MPhil , Principal , Co-Leader , Healthcare Practice
COVID‐19 has created a challenging economic environment . From the outset , we have worked closely with healthcare providers across the continuum of care to determine how to utilize the funding available most effectively from the COVID relief bills to help minimize the negative financial impact of the coronavirus pandemic . For example , we have worked with several hospital clients to develop a strategy to keep the
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funds received — from the $ 175 billion Provider Relief Fund stemming from the CARES Act — to the greatest extent permissible under applicable regulations and guidance . In particular , we have analyzed the organizations ’ 2020 financial performance in great detail , including down to the general ledger level , to ascertain the lost revenues and additional , incremental operating expenses attributable to the coronavirus pandemic and provided our clients with a spectrum of options for maintaining and reporting the use of the funds based upon the risk of different potential positions . Helping our clients to navigate such uncertain times has been deeply rewarding for our team .
CohnReznick LLP By Peter Epp , CPA , Partner , Community Health Centers , Practice Leader
Within the healthcare industry , our firm focuses on Federally Qualified Health Centers ( FQHCs ) and community mental health centers . Both have been dramatically impacted by the COVID‐19 pandemic . As an example , FQHCs saw a decline in patient visits of 70 percent to 80 percent between March through June and needed to reinvent themselves . To help these providers continue services , we developed
CPA firms worked with their healthcare clients to utilize funding available from the CARES Act .
Getty Images / iStockphoto a COVID‐19 Financial Response Strategy to help them preserve cash and prepare for the new normal . Teaming with our Restructuring Practice , we implemented their approach to treating sick companies and preventing providers from getting to the point of bankruptcy . Our work included developing a weekly cash flow projection template to help these providers evaluate cash flow during the pandemic . Our team then developed expertise in PPP loans , Provider Relief Funds and other government funding and tax stimuli designed to assist providers . We worked with several FQHCs and behavioral health providers to help them make staffing decisions designed to right-size the ship during the pandemic . Finally , we focused on telehealth and numerous Medicare / Medicaid regulatory waivers . This included assisting FQHCs and behavioral health providers with their telehealth billing issues to ensure cash collections continued to fund operations , albeit at reduced levels .
EisnerAmper LLP By Ron Dreskin , Principal-in-Charge Health Care Services Group
Having recently served as Interim CEO of St . Christopher ’ s Hospital for Children , I have three main areas of evolving advice : be willing to adapt technology across the organization to support providers , patients and employees ; be flexible in your supply chain to solve challenges ; and be creative in your approaches to serve and retain patients . Regarding technology , St . Christopher ’ s did not offer telehealth visits pre-pandemic . We quickly researched options and implemented a new telehealth system to continue to serve patients and their families . Additionally , we purchased new technology to help our environmental services workers to keep the facility safe , specifically a high-output UV disinfection robot . Technology can assist in many areas , whether supporting patient needs , maintaining a facility , or managing a remote workforce . Secondly , PPE shortages were universal , not just for healthcare workers but also for patients and their families . We looked outside of our usual suppliers to manufacturers who had been shut down due to COVID‐19 and had shifted production to manufacturing masks . Third , retaining patients is key to survival , especially when non-emergent services were postponed . At St . Christopher ’ s , we
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