PHOENIX — The state will give $3.6 million to the only hospital in Green Valley in a plan designed to keep its doors open.
The first $1.1 million payment has been made under a deal with the state, with an account set to receive the second $1 million payment, said Kelly Adams, the chief operating officer of Santa Cruz Valley Regional Hospital.
Two more payments totaling $1.5 million are to be paid within three weeks.
The money will most immediately be used to pay staff and suppliers, Adams said.
He said the hospital has been in financial trouble due to the pandemic and related restrictions imposed by the state.
In-patient revenues have dropped 60%, Adams said, driven in large part by a ban on elective surgery that Gov. Doug Ducey imposed to preserve medical equipment and supplies for pandemic use.
Emergency room revenues have dropped by the same amount, a situation that officials at the Arizona Hospital and Healthcare Association say is directly related to the governor’s stay-home order and fewer people on the road and getting into accidents.
To get the money, the governor’s office required Adams and hospital officials to sign a contract with the Arizona Health Care Cost Containment System, the state’s Medicaid program, and agree to conditions.
One is a requirement to remain open 24 hours a day, seven days a week.
Executives will have to take a 20% pay cut, though Adams said he is taking 30%.
And there cannot be payments to owners or shareholders.
The contract runs only through the end of May, leaving the question of whether the hospital can stand on its own afterward.
“We would hope so,” Adams said. “It just depends on how soon the patients come back, those that need elective surgeries, how soon the ERs pick up.”
Ducey has agreed to allow hospitals to resume elective surgeries if they have sufficient supplies.
And while the governor’s stay-home order remains in effect, he has loosened restrictions somewhat on where people can shop.
All hospitals are “going through the same issues that we are,” Adams said. “We just happened to be the first ones to raise our hand and say, ‘Hey, we need help.’”
But this isn’t the first time the 49-bed hospital has been in financial straits. It emerged from bankruptcy in 2018, with Adams taking over shortly thereafter. However, Adams said there is a path to profitability.
“We’ve done our studies,” he said. “We know what the epidemiology of the community is and the services that need to be provided. And there is sufficient population here to support this hospital.”
Ducey was pleased an agreement was reached “that ensures health-care operations continue and protects taxpayers,” gubernatorial press aide Patrick Ptak said.
Photos for April 23: Tucson gets by during Coronavirus Pandemic
Tucson, coronavirus
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Erika Munoz, owner of Seis Kitchen, hands over a bag of meals to Michael Gallagher Carondelet, a registered nurse at St. Joseph's Hospital, to distribute to other nurses and hospital workers, on April 23, 2020. The donation was made in conjunction with A+C (Athletes/Artists+Causes) Foundation's “Project Frontline.” In two deliveries, 400 meals (200 poc chuck chicken and 200 puerco verde burritos) will be given to medical personnel at Carondelet St. Joseph’s Hospital. The particular donation was made possible by the Houston Astros' Pitching Coach Brent Strom, who lives in Tucson.
Tucson, coronavirus
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Hospital workers wheel in carts full of catered meals donated by Seis Kitchen to Carondelet St. Joseph's Hospital, on April 23, 2020. The donation was made in conjunction with A+C (Athletes/Artists+Causes) Foundation's “Project Frontline.” In two deliveries, 400 meals (200 poc chuck chicken and 200 puerco verde burritos) will be given to medical personnel at Carondelet St. Joseph’s Hospital. The particular donation was made possible by the Houston Astros' Pitching Coach Brent Strom, who lives in Tucson.
Tucson, coronavirus
Updated
Kristi Hall, a sixth grade teacher at Desert Sky Middle School, participates in planning a lesson with a fellow teacher on Zoom, at her home on April 17, 2020. Schools in the Vail School District are supposed to open in July due to their year-round school calendar. Plans are being made for the possibility of students returning to the physical classroom.
Tucson, coronavirus
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Bry Kelley, a warehouse assistant, places a pallet filled with food down next to other items donated to the Community Food Bank of Southern Arizona on on April 21, 2020. Forty-one thousand pounds of flour, pasta and canned goods were donated by The Church of Jesus Christ of Latter-day Saints. The donation is part of an ongoing global effort by the church to address immediate needs of people and orgainzations due to the coronavirus disease (COVID-19) pandemic.
Tucson, coronavirus
Updated
A pallet of food is placed down next to other items donated to the Community Food Bank of Southern Arizona on on April 21, 2020. Forty-one thousand pounds of flour, pasta and canned goods were donated by The Church of Jesus Christ of Latter-day Saints. The donation is part of an ongoing global effort by the church to address immediate needs of people and orgainzations due to the coronavirus disease (COVID-19) pandemic.
Tucson, coronavirus
Updated
Christian Bergman, 4th year University of Arizona medical student, takes the temperature of a patient outside the Z Mansion, 288 N. Church Ave., in Tucson, Ariz., on April 19, 2020. Medical students from the University of Arizona and other universities volunteer to help the homeless population with the growing concerns of Coronavirus Disease (COVID-19) within the homeless population. “This is a vulnerable population in our community; they can’t defend themselves in a society already running short on supplies and resources,” said Bergman. Medical students and medical personal help by giving out food, drinks with electrolytes and masks to the homeless. Those who are sick, medically impaired or have been exposed to those with COVID-19 are isolated outdoors in tents on the property. As of Sunday April 19, there were 13 individuals whom are isolated in tents.
Tucson, coronavirus
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Lekha Chesnick, 1st year medical student at Burrell College of Osteopathic Medicine, talks with a homeless man (whom choose to not give his name) outside of the Z Mansion, 288 N. Church Ave., in Tucson, Ariz., on April 19, 2020. Medical students from the University of Arizona and other universities volunteer to help the homeless population with the growing concerns of Coronavirus Disease (COVID-19) within the homeless population. Medical students and medical personal help by giving out food, drinks with electrolytes and masks to the homeless. Those who are sick, medically impaired or have been exposed to those with COVID-19 are isolated outdoors in tents on the property. As of Sunday April 19, there were 13 individuals whom are isolated in tents.
Tucson, coronavirus
Updated
Christian Bergman, 4th year University of Arizona medical student, checks on a patient outside the Z Mansion, 288 N. Church Ave., in Tucson, Ariz., on April 19, 2020. Medical students from the University of Arizona and other universities volunteer to help the homeless population with the growing concerns of Coronavirus Disease (COVID-19) within the homeless population. “This is a vulnerable population in our community; they can’t defend themselves in a society already running short on supplies and resources,” said Bergman. Medical students and medical personal help by giving out food, drinks with electrolytes and masks to the homeless. Those who are sick, medically impaired or have been exposed to those with COVID-19 are isolated outdoors in tents on the property. As of Sunday April 19, there were 13 individuals whom are isolated in tents.
Tucson, coronavirus
Updated
Elliott Dumont, owner of Roadrunner Bicycles, 6177 E. Broadway Blvd., works on a customer's bike on April 22, 2020. The coronavirus disease (COVID-19) has not slowed down bike shops. With many people at home, they are bringing bicycles for repairs and buying new ones for exercise. Dumont says he's booked out till the first week of May for tuneups on bikes.
Tucson, coronavirus
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Elliot DuMont, owner of Roadrunner Bicycles, 6177 E. Broadway Blvd., far left, helps Ethan Sasz, far right, and his son, Evan, 10, with a mountain bike purchase on April 22, 2020. The coronavirus disease (COVID-19) has not slowed down bike shops. With many people at home, they are bringing bicycles for repairs and buying new ones for exercise. Dumont says he's booked out till the first week of May for tuneups on bikes.
Tucson, coronavirus
Updated
Marcella Montoya waits in her vehicle as general manger David Kessler brings out her order, as Bear Canyon Pizza serving their customers despite COVID-19 restrictions, April 22, 2020, Tucson, Ariz.
Tucson, coronavirus
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Kitchen manger Koa Hoffmann tosses dough while working up a crust for a call-in order as he and few others keep cooking at Bear Canyon Pizza despite COVID-19 restrictions, April 22, 2020, Tucson, Ariz.
Tucson, coronavirus
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Alvaro Enciso, a local artist, works in one of his studios at his home on April 9, 2020. Every Tuesday Enciso travels into the Sonoran desert to post crosses where migrants have died after crossing illegally over the U.S./Mexico border as part of a project he's titled Donde Mueren Los Suenos / Where Dreams Die. With the outbreak of the coronavirus disease his six year project is on hold and instead he works on other artwork at home.
Tucson, coronavirus
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Dolly Spalding works on a pen and ink drawing in her apartment at the Redondo Tower Apartments on April 7, 2020. During her quarantine, Spalding has been creating drawings of all the Greek goddesses. She is collaborating with Emlyn Boyle, an artist from Ireland, and plans to publish a book with Boyle's writings.
