OLEAN, NY— Olean General Hospital and Bradford Regional Medical Center — member hospitals of Upper Allegheny Health System — have received a second payment as part of the federal government’s COVID-19 stimulus program.
The $6.9 million payment follows a previous $3.6 million payment to help offset the costs of fighting the COVID-19 pandemic. Prior to the stimulus payments, UAHS had reported a projected 2020 loss of $23.5 million as a direct result of the COVID-19 pandemic.
“This funding is good news and certainly much needed. We are grateful to Congressman Tom Reed and all those who supported this stimulus funding which now totals $10.5 million,” Jeff Zewe, president and CEO of UAHS, said. “However, while we deeply appreciate this funding, we are still far from out of the woods.”
“This additional funding reduces projected losses for 2020 to $13 million,” Rick Braun, senior vice president and chief financial officer of UAHS, said. “We still have a huge financial mountain to climb and will continue to appeal to our government leaders to identify additional funding.”
Last week, Zewe and Braun voiced concerns about UAHS’ finances because of the negative financial impact of the COVID-19 pandemic. The loss of business due to the cancellation of elective surgeries, taking services offline and a drop of 50-80% in patient activity across OGH and BRMC put the hospitals, like all rural hospitals, in a precarious financial position.
UAHS previously reported that March and April losses for UAHS totaled nearly $10 million.
“We appreciate this latest stimulus funding. However, we need our government officials to support additional grant funding to save rural hospitals from financial crisis,” Zewe said.
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