Scientists and lawmakers agree that over-the-counter covid tests could allow desk workers to settle back into their cubicles and make it easier to reopen schools and travel.
But even as entrepreneurs race their products to market, armed with millions of dollars in venture capital and government investment, the demand for covid testing has waned. Manufacturing and bureaucratic delays have also kept rapid tests from hitting store shelves in large numbers, though the industry was energized by the Food and Drug Administration’s greenlighting of two more over-the-counter tests Wednesday.
Corporate giants and startups alike plan to offer a dizzying array of test options, most costing between $10 and $110. Their screening accuracy varies, as does the way consumers get results: collection kits mailed back to a lab, devices synced with artificial intelligence-enabled apps on a smartphone that spit out results within 15 minutes, and credit card-sized tests with strips of paper that must be dipped into a chemical substance.
“At-home tests are one of the key steps to getting back to normal life,” said Andy Slavitt, a member of the White House COVID-19 Response Team, during a February briefing.
The Biden administration announced in March it will allocate $10 billion from the recently passed stimulus package for covid testing to expedite school reopenings, and earlier said it would invoke the Defense Production Act to manufacture more at-home tests. Separately, the federal government has already sent millions of Abbott Laboratories’ BinaxNOW rapid tests to states, and California, for instance, is giving 3 million of them to its most disadvantaged school districts for free.
Large employers, like Google, sports leagues and the federal government, have already shelled out millions to regularly test their workers. Amazon just received emergency use authorization from the FDA for its own covid test and home collection kit, which it intends to use for its employee screening program.
Individuals who want to buy over-the-counter tests can bill their health insurance plans, which are required by the federal governmentin most cases to fully cover covid tests that have been authorized by the FDA.
Everlywell, based in Austin, Texas, is an at-home diagnostic company that already sells its collection kit to consumers through its website and Walgreens, and will soon offer same-day delivery via DoorDash in a dozen cities. Dr. Marisa Cruz, Everlywell’s executive vice president of regulatory and clinical affairs, said buyers can seek reimbursement from their insurance plans for the kit’s $109 cost. The tests are also eligible for purchase with pretax dollars from health savings or flexible spending accounts, she said.
Even with vaccines, epidemiologists say, rapid tests are desperately needed because more testing, along with mask-wearing and physical distancing, will get people back in offices and classrooms and help catch cases that go undetected. A report by the Centers for Disease Control and Prevention found that, of people with active infections, 44% reported no symptoms.
But the market for over-the-counter tests is risky. Demand for testing has plunged dramatically since the height of the winter surge and may not rebound as more people are vaccinated.
“You clearly are at risk of missing the market,” said Michael Greeley, co-founder and general partner at Flare Capital Partners, a venture capital firm focused on health care technology.
But Douglas Bryant, president and CEO of Quidel Corp., remains unfazed, even after the diagnostics manufacturer’s testing demand dropped by about one-third in the past two months.
“The level of testing for people with symptoms and the ‘worried well,’ who see others getting tested and think they should, too, is subsiding,” Bryant said. “But once we start to get more people vaccinated, the government will move from campaigning to get people vaccinated to saying, ‘Please test yourself regularly so we can get back to work.’”
Quidel, headquartered in San Diego, recently unveiled its latest test, the QuickVue At-Home COVID-19 Test, which takes 10 minutes to detect the coronavirus by homing in on specific proteins, called antigens. The FDA authorized the test for over-the-counter use Wednesday, and Quidel plans to announce retail partners in the coming weeks.
The FDA said in mid-March it would speed the pipeline for “screening testing,” including at-home covid tests that don’t require consumers to have symptoms or a prescription.
In February, the Biden administration cut a $232 million deal with Ellume, whose rapid antigen test was authorized by the FDA in December. Paired with an app, the test takes 15 minutes to analyze after a nose swab.
The Australian company currently ships hundreds of thousands of test kits a week to the U.S. from its factory in Brisbane to large companies and the Department of Defense. It plans to be on the shelves of multiple pharmacies by the second half of the year and in one major retailer in April, said Dr. Sean Parsons, the company’s founder and CEO.
“We are going as fast as we can possibly go,” he said.
The main holdup for Ellume has been getting enough swabs for its production line. The company is building a factory in the U.S. to reduce international shipping costs and increase production.
Abbott, which dominates the rapid-test market, said in January it expects to sell 120 million BinaxNOW antigen tests to consumers in the first half of the year. People who take the test now must do so under observation by telemedicine platform eMed. But Abbott received authorization from the FDA this week for an over-the-counter version that won’t require remote observation or a prescription. The test will be available in U.S. stores in the coming weeks, the company said.
Throughout the pandemic, the government has depended heavily on medical device behemoth Abbott’s testing options. The company’s rapid-diagnostics arm alone has snared $673 million in federal contracts to combat the coronavirus, according to a ProPublica database. This includes bulk purchases made by the Defense Department, the national prison system, Immigration and Customs Enforcement, the State Department and former President Donald Trump's office.
But antigen tests sometimes report false negatives, particularly among people without symptoms, noted Dr. Jac Dinnes, who co-authored a review of 64 covid test studies. By comparison, polymerase chain reaction (PCR) tests — generally employed by commercial labs — are more sensitive. PCR tests search for the virus’s genetic material over multiple testing cycles, which magnifies what’s in the swab sample, requiring a much smaller viral load for detection.
Antigen tests are the basis for most at-home screening, but the FDA has also authorized two at-home options — made by Lucira Health and Cue Health — that use molecular processes similar to a PCR test.
Still, many experts support the widespread distribution of cheap, rapid tests, even if they aren’t as sensitive as lab-run alternatives, and see a demand. In Germany, the supermarket chain Aldi began selling rapid tests in early March, roughly $30 for a five-pack, and sold out within hours. One recent study found that if a pack of tests was mailed to every household in the U.S. — even assuming that up to 75% would go into the garbage — they would save thousands of lives and avert millions of infections.
“Don’t let perfect be the enemy of good,” said study co-author and Yale University professor A. David Paltiel. “This doesn’t have to work perfectly to make a huge difference.”
Some companies are working on rapid-testing options that more precisely read samples, such as Gauss.
The Menlo Park, California, health tech company, which before the pandemic created an artificial intelligence-based app to measure surgical blood loss in real time, aims to harness its expertise to improve on the basic antigen test. It took about a week for CEO Siddarth Satish to raise $30 million of venture capital last October.
Its covid-testing app uses facial recognition software to confirm that test-takers correctly swab their noses. The app provides step-by-step instructions and timers. After 15 minutes, an algorithm based on thousands of sample tests interprets the result — which displays as a colored line, as with a pregnancy test — using the phone’s camera.
Gauss and Cellex, which manufactures the Gauss tests, await FDA authorization. In the meantime, they have produced more than 1.5 million kits and struck deals with supermarket chain Kroger and e-pharmacy site Truepill to sell them for about $30.
“A huge part of the accuracy issue with rapid tests is that you have to visually interpret them,” Satish said. “Sometimes you get really faint lines, just like with a pregnancy strip, and there’s some guesswork.”
Lucira Health, based in Emeryville, California, uses something called loop-mediated isothermal amplification technology, which is similar to PCR tests in precision. In February, the company went public, raising $153 million largely to fund the manufacturing of its all-in-one testing kit, currently prescribed by doctors across the country. The kit comes with a nose swab and a vial of chemicals analyzed by a hand-held device — taking up to 30 minutes for results.
Kelly Lewis Brezoczky, Lucira’s executive vice president, envisions the test kit on the shelf in local pharmacies, perched next to the NyQuil. “I always like to tell people that it is as easy to use as toothpaste,” she said.
MISSOULA, Mont. — Montana's COVID-19 vaccine distribution is among the most efficient in the nation, but closer examination reveals a patchwork of systems among counties and tribal governments that will be put to the test as the state opens vaccine eligibility to all people 16 and older starting this month.
KHN, Montana Free Press and the University of Montana School of Journalism surveyed all 56 counties and eight tribal governments to find out how vaccine distribution has worked over the past four months and what residents might expect when the floodgates open.
Montana's rate of COVID vaccines given is in the top tier in the nation, according to the Centers for Disease Control and Prevention. More than 186,500 people — roughly 17% of the state's population — had been fully vaccinated by the end of March. But that progress papers over a disjointed rollout that's been left to individual public health departments that are already overstretched. An increasing number of employees have resigned after working long hours while being harassed and blamed for enforcing COVID restrictions such as mask mandates. At least 10 counties have lost their top health official in the past year, though many more public health workers have left jobs.
The pressure remains as larger shipments of vaccines arrive and highly contagious variants of the coronavirus spread in Montana. More pharmacies are coming online to administer doses, which is expected to help in the race to vaccinate Montanans. But the task of ensuring everyone who wants a shot gets that chance will likely continue to fall on local health officials.
For those seeking vaccines, the process can be bewildering. In Missoula County, Dennis Klemp qualified early on for the shot as an 81-year-old with kidney disease. Klemp, who doesn't have a computer, put the county's health department on his phone's speed dial and called daily, but he was unable to secure a spot in vaccination clinics that filled within minutes.
"I was pretty despondent," Klemp said. "There was mass confusion, and I've got a lot of friends who were just as confused as I was."
After spending more than a month trying to book an appointment, Klemp called his local television station for help in February. NBC Montana reporter Maritsa Georgiou said she managed to book an appointment for him over the phone, and she estimated she similarly helped at least 30 others register for vaccines.
There are multiple ways to get a vaccine in Montana. Tribal governments are getting doses to Native Americans and some are also vaccinating non-Natives either through the state or the federal Indian Health Service program. The U.S. Department of Veterans Affairs is a source for veterans, their spouses and caregivers. Federally contracted pharmacies are giving vaccines to the general public after distributing shots in assisted living centers.
For counties and tribes that participate in the state program, a mishmash of strategies has resulted in the absence of a detailed state plan to sign up people for doses. Montana's patchwork approach is no accident. State leaders deliberately left it up to local governments with few rollout guidelines because they said local leaders know best how to reach their residents.
Some states have set up one-stop vaccine registration systems to bring order to the scramble of the largest vaccine effort in history. But Jim Murphy, head of Montana's Communicable Disease Control and Prevention Bureau, said that a pandemic wasn't the time to force a new system on local governments, and that Montana's approach is working.
"Most of our major providers already have those systems built, so we weren't going to say, 'Well, here's another big road you can take,'" Murphy said. "Just didn't seem like it would be worth that effort."
Nicholas Stewart, a senior research scientist at the international health data nonprofit Surgo Ventures, said Montana's high national ranking, despite its lack of a unified system, has been a surprise.
Montana's success may be partly due to officials' familiarity with the inherent challenges that come with delivering healthcare in the fourth-largest state by land, yet eighth-smallest state by population. Public health workers have long worked to reach isolated people and spot hurdles to accessing care, such as a lack of internet access.
Ideally, states would test different scenarios before expanding vaccine eligibility, but needs have rapidly shifted. "What we have constantly been seeing is decisions are being made on the fly," Stewart said.
In Carter County, in the southeastern corner of the state, early vaccine efforts faltered because nobody was on hand to administer the shots. The area's health officer resigned in mid-December and the county had been without a public health nurse since summer. In January, residents eligible for a shot had to drive to neighboring Fallon County, where Carter County had sent its allotment of vaccines to prevent wasting doses.
Trish Loughlin, Carter County's interim public health nurse, has led the vaccine effort part time since late January. Despite the initial lag, Loughlin said, the county is catching up and everyone who wants a dose should be able to get one by early April.
"The collaboration of a neighboring county is what helped; it's the only way we did that," Loughlin said.
Fallon County's health director also resigned in December. Mindi Murnion, Fallon County's public health specialist, said residents angry about pandemic-related rules drove out the health director before the county got its first supply of COVID vaccines.
"There was a little bit of panic," Murnion said. "But after we got through that first clinic, now we whip it out like clockwork."
She said she's relieved the state let Fallon create its own vaccine plan, which includes calling people already in its system to book appointments and working with other counties to move doses based on need.
"It might not be the way everybody else does stuff, but it's the way we do stuff," Murnion said.
In larger counties, a major hurdle is making sure all residents can navigate systems in which they're competing with thousands for appointments.
Despite Klemp's difficulty making an appointment by phone, Missoula County set aside 20% of available vaccine appointments for seniors without internet access, according to Adriane Beck, Missoula County's emergency management director. The county also held an outreach campaign using nonprofit agencies, utility bill inserts and ads run by newspapers and radio and television stations to prod people to make appointments by phone.
But, to the dismay of some, the county doesn't offer a vaccine waitlist for people struggling to book an appointment.
"From a logistical and just a management perspective, we were not going to be successful and we were not going to meet people's expectations," Beck said.
She said making vaccines available to all people over 16 may complicate access for more vulnerable groups until supplies increase. An effort is underway, she said, to reach "stragglers" and homebound residents.
The Flathead Nation's Confederated Salish and Kootenai Tribes have outpaced many Montana counties when it comes to vaccine distribution, despite what Health Director Chelsea Kleinmeyer described as a low initial allocation by the state to the tribes. Weeks before the state's April 1 expansion of eligibility to the general population, tribal health officials were offering shots to all adult tribal members along with descendants and other Native Americans.
Kleinmeyer said tribal health officials relied heavily on community health representatives to identify and contact vulnerable elders. Health officials eventually worked their way to anyone living in an American Indian household along with tribal and nontribal teachers and employees. The Salish and Kootenai Tribes had planned to vaccinate approximately 12,000 people.
"We feel like maybe we hit this saturation point with tribal people on the reservation," Kleinmeyer said, adding the tribe is now preparing to help nearby counties.
Silver Bow County is using its civic center ticketing system, usually used for concerts and sporting events, as one way to schedule vaccine appointments.
"We thought, if you could get a ticket to go to a basketball game, why couldn't we do that here? And it worked," said Karen Sullivan, health officer for Butte-Silver Bow County.
Sullivan said the overall joy that people exhibit at vaccine clinics has been a bright spot during a difficult period. The past year has been one of threats and verbal attacks against her and her staffers for implementing COVID restrictions. Sullivan, 62, said she's considering early retirement after seeing the vaccine rollout through.
"I'm not gonna leave in the middle of this," Sullivan said. "When we get to the point where we have a great percentage of our people vaccinated, I'll give retirement some serious thought. I need the rest."
Eric Dietrich and Chris Aadland of Montana Free Press and Andrea Halland, Antonio Ibarra Olivares, Aidan Morton and Addie Slanger of the University of Montana School of Journalism contributed to this report.
Making top-quality care accessible at out-of-state children's hospitals for kids with complex medical needs has long vexed families, providers and Medicaid programs.
This article was published on Monday, April 5, 2021 in Kaiser Health News.
Three-year-old Elizabeth Zakutansky was born with a rare genetic condition that causes multiple seizures. Her neurologist, a top expert on treating her condition, practices at Lurie Children's Hospital of Chicago, less than an hour's drive from the Zakutanskys' home in Hobart, Indiana. Her parents would like her to get all her care there.
But Lurie wouldn't continue to treat Elizabeth, because her insurer, Indiana Medicaid, pays out-of-state providers much less than in-state facilities. That's true for most state Medicaid programs. So the Zakutanskys pay the Lurie neurologist out-of-pocket for consultations, and the doctor gives detailed instructions for Elizabeth's care to their local pediatrician.
When Elizabeth suffers uncontrolled seizures, however, she needs quick interventions. Her parents have to pull their two teenagers out of school and the whole family drives 2½ hours to Riley Hospital for Children in Indianapolis, the state's only specialized pediatric facility. If she has to be admitted, the family sometimes must leave her there to return to their jobs and school.
"It's terrible to leave your daughter and drive home so far away," said Laura Zakutansky, Elizabeth's mother. "You aren't there to comfort her. One seizure could kill her. How would you feel about that if you weren't there?"
Making top-quality care accessible at out-of-state children's hospitals for kids with complex medical needs has long vexed families, providers and Medicaid programs. The choice of an out-of-state hospital can be a matter of convenience for patients and their families, and it may also mean ensuring state-of-the-art care, since only a limited number of hospitals and physicians in the country have the skills and experience to best treat children with certain conditions.
Congress has recognized the problem. Two years ago, it passed a law allowing states to voluntarily establish a "health home" program, potentially making it easier for out-of-state providers to serve as the coordinating caregiver for children with complex conditions. Participating states would receive a temporary boost in federal Medicaid funding to launch the program. But the Centers for Medicare & Medicaid Services said it has no "definitive timeline" for issuing guidance to the states on how to set this up.
State Medicaid officials argue that their states can't afford to send children to out-of-state facilities that demand higher payment rates. Children's hospitals say all they want is rates equal to what Medicaid pays in-state providers. Complicating matters is that most states have private Medicaid managed-care plans running their programs, and those plans decide which providers patients can go to and how much to pay them.
But Indiana lawmakers are moving on bills that would boost Medicaid payments to children's hospitals in bordering states — Illinois, Kentucky, Michigan and Ohio — to near-parity with in-state facilities. Currently, a facility in Chicago might receive reimbursement as low as one-fourth of what an Indiana hospital would get for the same services. Both the House of Representatives and the Senate passed versions of the bill, and they are expected to reconcile the differences shortly and send it to the governor. The projected annual cost to the state is $300,000 to $950,000. To address fears that it may cost more, the bill would have to be reauthorized in two years.
"These families have to schlep down three hours in the snow to Indianapolis, and if they try to reschedule an appointment, they may have to wait another six weeks to get in," said state Republican Sen. Mike Bohacek, one of the bill's lead sponsors. He faced that situation with his own daughter, who was born in 2001 with Down syndrome in critical condition. "We can do better."
Nearly 90% of children's hospitals serve out-of-state patients, receiving payments from more than six states on average, according to a federal Medicaid commission report last year. Two-thirds of the states pay out-of-state hospitals a lower rate than in-state facilities. Kids with complex medical conditions account for 40% of Medicaid's spending on pediatric care.
Children's hospitals say getting approval from Medicaid agencies and managed-care plans to treat out-of-state children and negotiating payment often takes more time than delivering the care. They have to arrange individualized case agreements for each patient.
Dr. John Cunningham, physician in chief at Comer Children's Hospital in Chicago, said hospital staff members recently removed a brain tumor in a child from northwestern Indiana. But Medicaid refused a payment deal that would have enabled Comer to continue treating the patient, forcing the family to go to Indianapolis for follow-up care.
"The transfer was not because of the care. It was because of an artificial boundary called a state line," said Cunningham, whose hospital is treating 275 kids from northwestern Indiana and has hired a lobbyist to push the Indiana bill. "That's a fundamental problem."
But Medicaid officials say that sending kids to out-of-state facilities can be too costly and that interstate travel may not be best for the family. "When a children's hospital prides itself on being the top pediatric center for different conditions, it knows people will come and it doesn't have to negotiate," said Matt Salo, executive director of the National Association of Medicaid Directors. "It's 'take it or leave it.' That's not fair."
Some states and children's hospitals have been able to work out broader deals. The Illinois Medicaid program, for instance, has arranged to pay St. Louis Children's Hospital in-state rates for serving children in the East St. Louis, Illinois, area.
In contrast, Children's Hospital of Philadelphia leaders say their facility often treats children who live just across the Delaware River in New Jersey for much lower rates than New Jersey's Medicaid program pays the more distant in-state children's hospital — or without getting paid at all. It offers some services, such as fetal surgery to correct spina bifida, that aren't available in New Jersey.
"None of the Medicaid [managed-care] plans in New Jersey has ever complained that our rates are too high," said Ahaviah Glaser, senior director of health policy at Children's of Philadelphia, which serves 25,000 New Jersey kids a year. "But behind closed doors, they say it's too expensive to have a [renowned, out-of-state] children's hospital in their plan's network, because it attracts sick kids. That's illegal and immoral."
New Jersey lawmakers are considering a bill requiring the state's five Medicaid managed care plans to offer adequate pediatric care networks within set distance limits.
Wardell Sanders, president of the New Jersey Association of Health Plans, warned that unless it adds rate limits, the bill would hike state Medicaid spending by forcing plans to cover even routine pediatric care at top children's hospitals in Philadelphia and New York.
Other children's hospitals around the country also complain about Medicaid barriers to treating out-of-state kids. Leaders at the Denver area's Children's Hospital Colorado, which serves thousands of patients from six surrounding states, say their doctors must obtain separate liability insurance policies in each state. And each has a different policy on covering families' travel and lodging.
"Once we've started to see a patient, we don't have a lot of negotiating leverage," said Annie Lee, Colorado Children's executive director of Medicaid strategies and community health. "We have rates from states that are all over the board, and we're unable to consistently cover the costs of care."
All this can produce hassles and anxiety for parents of very sick children, who already face tremendous stress and costs.
Vinessa Kirkwood, who lives in an Indiana suburb near Chicago, said she's had to cancel appointments at Riley Children's in Indianapolis for her 20-month-old son, Donte, because she can't afford lodging. Also, she shares a car with her partner, who needs it for work, and she juggles Donte's care with the needs of her four other children.
She wants Donte, who was born with cerebral palsy and severe digestive problems, to receive his regular care at Lurie Children's, where he had surgery soon after he was born. So she's closely watching what happens with Sen. Bohacek's bill.
"I've got those Lurie doctors on speed dial," she said. "I'm hoping to get back to them soon."
Some of the nation's richest hospitals and health systems recorded hundreds of millions of dollars in surpluses after accepting the lion's share of the federal healthcare bailout grants.
This article was published on Monday, April 5, 2021 in Kaiser Health News.
Last May, Baylor Scott & White Health, the largest nonprofit hospital system in Texas, laid off 1,200 employees and furloughed others as it braced for the then-novel coronavirus to spread. The cancellation of lucrative elective procedures as the hospital pivoted to treat a new and less profitable infectious disease presaged financial distress, if not ruin. The federal government rushed $454 million in relief funds to help shore up its operations.
But Baylor not only weathered the crisis, it thrived. By the end of 2020, Baylor had accumulated an $815 million surplus, $20 million more than it had in 2019, creating a 7.5% operating margin that would be the envy of most other hospitals in the flushest of eras, a KHN examination of financial statements shows.
Like Baylor, some of the nation's richest hospitals and health systems recorded hundreds of millions of dollars in surpluses after accepting the lion's share of the federal healthcare bailout grants, their records show. Those included the Mayo Clinic, Pittsburgh's UPMC and NYU Langone Health. But poorer hospitals — many serving rural and minority populations — got a tinier slice of the pie and limped through the year with deficits, downgrades of their bond ratings and bleak fiscal futures.
"A lot of the funding helped the wealthy hospitals at a time, especially in New York, when safety-net hospitals were hemorrhaging," said Colleen Grogan, a health policy professor at the University of Chicago. "We could have tailored it to hospitals we knew were really suffering and taking on a disproportionate amount of the burden."
In Baylor's case, the system, which runs Baylor University Medical Center in Dallas and 51 other hospitals, said it spent $257 million last year on pandemic-related costs, including protective clothing for employees and patients and creating isolation rooms. Baylor has $197 million in unspent federal relief funds to use this year to cover costs of battling the virus and refrigerating vaccines, it said.
"Our COVID-19-related expenses and lost revenue continue to exceed the funding we have received to date," Baylor said in a statement to KHN.
Other well-heeled hospitals or large systems faced bigger problems. Both NewYork-Presbyterian Hospital and CommonSpirit Health, a 140-hospital Catholic system that operates in 21 states, lost money despite federal grants in the vicinity of a billion dollars each. A few systems, including the for-profit chain HCA Healthcare, returned federal funds when they saw they had skirted their worst-case scenarios. But most spent the aid and held onto any leftover money and new grants to cover anticipated pandemic costs this year because hospital executives fear more case spikes.
Much of the lopsided distribution was caused by the way the Department of Health and Human Services based the allotment of the initial bailout funds on hospitals' past revenue. That favored institutions with well-off patients who have private health plans over those that rely on lower-paying government insurance, which is what many poor people use.
HHS distribution formulas did not take into account which hospitals had enough assets to survive.
Baylor, for instance, began 2020 with $5.4 billion in cash and investments, enough to keep it running for 238 days, the financial disclosures show.
Hospitals that ended the year with profits were entitled to federal aid because of the extraordinary latitude Congress and HHS set in how hospitals could classify their pandemic costs.
Last fall, when HHS attempted to limit how much aid hospitals could keep based on their profits — so the money could be redirected to struggling hospitals — the effort was swiftly beaten back by the industry and Congress. HHS officials declined requests for an interview but noted in a statement that Congress had ordered it to revert to its "broader definition of permissible use of PRF funds."
"The Biden Administration continues to review programs and policies including considerations for the unallocated funding under the PRF program and the $8.5 billion recently appropriated under the recently signed American Rescue Plan Act," the statement said.
Avoiding a Drawdown of Reserves
The bailouts were initiated last spring to help healthcare providers ride out a once-in-a-century public health calamity. The money designated to hospitals and other healthcare providers from the Coronavirus Aid, Relief, and Economic Security (CARES) Act and subsequent legislation totaled $178 billion.
It was intended to offset all costs of treating infected patients, including purchasing ventilators, masks, gowns and other personal protective equipment. Congress further authorized hospitals to use the money to compensate for a drop in revenue when they shut down elective surgeries and non-emergency treatments to prepare for the anticipated deluge of COVID-19 patients.
The money, referred to as the Provider Relief Fund, helped many poorer hospitals avert cash crunches, layoffs and bond rating downgrades. A survey by the consulting firm Kaufman Hall found that the median hospital gain during 2020 would have been 0.3% without the federal support. With it, half of hospitals posted gains of 2.7% or more, below the 2019 median margin of 3.1%, according to the firm, which also produces analytic work for the American Hospital Association.
In February, the association urged Congress to replenish the nearly empty relief fund, saying, "hospitals have never experienced such a widespread, national health crisis."
Some hospitals' finances deteriorated significantly during the pandemic. From the end of March through December, the rating agency Moody's downgraded 28 hospitals, primarily because of weaknesses such as higher debt or more competition, said Lisa Goldstein, associate managing director at Moody's.
Others suffered worse fates, like Williamson Memorial Hospital, which shut down last April. The hospital, in West Virginia's coal country, had been trying to climb out of bankruptcy protection, but "unfortunately, the decline in volumes experienced from the current pandemic were to[o] sudden and severe for us to sustain operations," its CEO wrote on Facebook.
Conversely, many prosperous health systems emerged unscathed from the moratoriums of last spring, often due to the federal aid. "It gave them an ability to not have to draw down on their reserves to make up for the loss in revenue," said Suzie Desai, a senior director at S&P Global Ratings.
Systems saw patient visits return to near normal as the year wore on. In some cases, business in the latter half of 2020 was even higher than in the same period in 2019 because of pent-up demand for treatments postponed from the spring, financial records show.
"We saw volumes spring back" in every area except emergency room visits, said Kevin Holloran, a senior director at Fitch Ratings. Major hospital systems also reported that cases tended to be more complex than normal, leading to higher insurance payments.
UPMC accepted $460 million in bailout funds while collecting $2.5 billion more in revenue in 2020 than in 2019. The nonprofit system ended the year with an $836 million operating surplus — providing a 3.6% margin that was triple the prior year's — in part due to the growth of the health insurance plan the system owns.
Other hospitals that sold insurance, including Baylor, persevered because the cause of their financial troubles — fewer surgeries and doctors' visits — meant the health plans paid fewer claims.
UPMC's strong finances went unmentioned in a recent fundraising pitch announcing the launch of its "Healthcare Heroes" campaign. "During the past year, healthcare workers have carried the weight of the world on their shoulders, risking their own health and safety to ensure ours as we navigated the COVID-19 pandemic," the email said. "Now it's our turn to recognize their hard work. … By making a donation, you will help provide training, recognition, and support for our staff initiatives."
Donald Yealy, a senior vice president of UPMC and the chief medical officer of UPMC Health Services, said the fundraising appeal was a way to allow people in the community to show their appreciation.
"The intent of the request and the letter were clear. People are free to ignore or to have an opinion. I don't begrudge that at all. I respect people having a different opinion," he said.
Hospitals can hold on to unspent relief funds until the end of July to defray any further pandemic-related costs. After that, any unspent money must be returned to the U.S. Treasury. UPMC retains $80 million in unspent relief funds, which the health system said it expects to use. "We're still in the process of incurring significant costs related to COVID," said Edward Karlovich, UPMC executive vice president and chief financial officer.
'A Shot in the Arm' Sometimes Unneeded
In April 2020, the Mayo Clinic in Rochester, Minnesota, forecast up to $3 billion in lost revenue because of the pandemic. Instead, Mayo, which received $338 million in federal relief funds, ended the year with revenue that was $202 million higher than in 2019. Mayo recorded a $728 million surplus, which equaled a 5.2% margin.
"It gave us a shot in the arm when we needed it," said Dennis Dahlen, Mayo's chief financial officer. Later, when it seemed likely Mayo would run a surplus, executives debated what to do with the federal funds.
"Honestly, we considered dropping the margin," Dahlen said. After weighing their options, Mayo "landed in a middle-of-the-road decision" by returning $156 million to the federal government.
"We considered it with what everyone else was doing … and we thought about what was good for society," Dahlen said. "'Nonprofit' doesn't really mean no profit. It means tax-exempt. We still have to create earnings so we can reinvest in ourselves."
Mayo ended the year with $14 billion in investments, $3 billion more than it had in 2019, a 29% increase.
The funds were, indeed, a lifesaver for some. Marvin O'Quinn, president and chief operating officer of CommonSpirit Health, said "there was never a thought of turning back the money."
Despite receiving $1.3 billion in relief funds, CommonSpirit, based in Chicago, ended last year with a $75 million deficit, which translated to a 0.2% loss.
"We have been set back by a year," O'Quinn said. "All the things we wanted to do — to renovate, to building new facilities, to expand our service — we've had to slow up to get through the crisis."
Scattershot Relief
The first $50 billion in relief funds "was sent out indiscriminately as a life support," said Ge Bai, an associate professor at Johns Hopkins Bloomberg School of Public Health. HHS tried to target subsequent distributions. It sent $22 billion to 1,090 hospitals with large numbers of COVID patients. It sprinkled an additional $16 billion among hospitals that serve poor populations, Native American tribes, people in rural areas and children.
But even with the targeted aid, recipients included well-endowed academic medical centers and major urban hospitals. Only $14 billion took profitability into consideration, HHS documents show. HHS restricted those payments to hospitals with 3% or lower profit margins.
Wealthy hospitals also benefited because HHS used a broad definition of lost revenue. If a hospital earned less than in the year before, or simply less revenue than it had budgeted for, it could chalk up that difference to the pandemic and apply the relief funds to it. The implications garnered little attention at the time as they were overshadowed by the concerns about how HHS was doling out the money rather than how it could be used.
In September, HHS attempted to tighten its overall limits on how much money the hospitals could keep by basing it on the difference from the previous year's net income rather than overall revenue — a number that in many cases would be much lower. The goal, the department said, was to "prohibit most providers from using PRF [Provider Relief Fund] payments to become more profitable than they were pre-pandemic, to conserve resources to allocate to providers who were less profitable."
The American Hospital Association complained that would punish hospitals that had behaved responsibly by cutting costs and be an "administrative and accounting disaster," as many hospitals had already spent the grant money.
HHS backed down a month later, citing "significant attention and opposition from many stakeholders and Members of Congress." Not fully satisfied, Congress cemented the rollback in a December law.
Some hospital executives attributed their surpluses to their aggressive cost-cutting measures.
NYU Langone Health, for instance, received $461 million in relief funds, which covered about a third of its pandemic-related losses, said Daniel Widawsky, chief financial officer. Another third of Langone's losses was absorbed by the record-high financial performance in the months before the pandemic, he said, and prompt cost control addressed the rest.
Widawsky said that at the beginning of March Langone canceled travel, froze hiring, paused construction and stopped discretionary purchases. "The first three days in March, we locked down spending," he said. "If they wanted to buy a pencil, they had to call me." Langone ended its fiscal year in August with $208 million in net income, and recorded a $136 million surplus in the final quarter of 2020, or 5.5%. Earlier this year, two credit agencies upgraded their outlook on Langone from stable to positive.
Despite accepting $942 million in bailout funds, NewYork-Presbyterian Hospital had a $457 million operating deficit, a 7% loss, at the end of September. It was a sharp turn from September 2019, when the system recorded a $166 million surplus, a 2.5% gain.
The system, which declined to comment, has not yet released its financial metrics for the final three months of 2020, but Fitch projected it would remain in the red. Still, NewYork-Presbyterian remains fiscally solid: Its most recent disclosure reported $3.8 billion in cash and short-term investments, enough to keep operating for more than a year.
States have tried with limited success to get COVID vaccines to people of color, who have been disproportionately killed and hospitalized by the virus.
Starting Thursday, Vermont explicitly gave Black adults and people from other minority communities priority status for vaccinations. Although other states have made efforts to get vaccine to people of color, Vermont is the first to offer them priority status, said Jen Kates, director of global health and HIV policy at KFF. (KHN is an editorially independent program of KFF.)
All Black, Indigenous residents and other people of color who are permanent Vermont residents and 16 or older are eligible for the vaccine.
It will be a short-term advantage, since Vermont opens COVID inoculations to all adults April 19.
Still, Vermont health officials say they hope the change will lower the risk for people of color, who are nearly twice as likely as whites to end up in the hospital with COVID-19. "It is unacceptable that this disparity remains for this population," Dr. Mark Levine, Vermont's health commissioner, said at a recent news conference.
But providing priority may not be enough to get more minority residents vaccinated — and could send the wrong message, some health experts say.
"Giving people of color priority eligibility may assuage liberal guilt, but it doesn't address the real barriers to vaccination," said Dr. Céline Gounder, an infectious diseases specialist at NYU Langone Health and a former member of President Joe Biden's COVID advisory board. "The reason for lower vaccination coverage in communities of color isn't just because of where they are 'in line' for the vaccine. It's also very much a question of access."
Vaccination sites need to be more convenient to where these targeted populations live and work, and more education efforts are necessary so people know the shots are free and safe, she said.
"Explicitly giving people of color priority for vaccination could backfire," Gounder said. "It could give some the impression that the vaccine is being rolled out to them first as a test. It could reinforce the fear that people of color are being used as guinea pigs for something new."
Dr. Georges Benjamin, executive director of the American Public Health Association, said that's why he has opposed using race as a risk factor to determine COVID vaccine eligibility.
But he sees signs that vaccine hesitancy is improving nationally and called Vermont's new approach "admirable." Still, he said, states should continue to use a range of options to get vaccines to minority communities, such as providing vaccination sites in Black neighborhoods and places that residents trust, like churches.
No state is achieving equity in its vaccine distribution, said KFF's Kates.
"People of color, whether they be Black or brown, are being vaccinated at lower rates compared to their representation among COVID cases and deaths, and often their population overall," she said.
Blacks make up about 2% of Vermont's population and 4% of its COVID infections, but they have received 1% of the state's vaccines, according to KFF.
"Since states are really not doing well on equity, other strategies are welcome at this point," said Kates.
Yet, there's another reason public health officials have balked at explicitly giving people of color vaccine priority. "It could be politically sensitive," she said.
The rollout of vaccinations in California, as in many states, has been slow and chaotic. More than 5 million of the 24 million adults in the nation’s most populous state have been at least partially vaccinated, while an additional 5.6 million are fully vaccinated.
Leonor Garcia held her clipboard close to her chest and rapped on the car window with her knuckles. The driver was in one of dozens of cars lined up on a quiet stretch of road in Adelanto, California, a small city near the southwestern edge of the Mojave Desert. He was waiting for the food bank line to start moving and lowered the passenger window just enough to hear what Garcia wanted. Then she launched into her pitch.
“Good morning! We’re here to talk about covid-19 today! Do you have a minute?” she said in Spanish.
After a brief conversation, Garcia learned the man had no internet connection or phone of his own but was 66 years old and wanted to get the covid vaccine. He had tried to visit a pharmacy in person, but the shots were all out for the day. Garcia took down his name and the phone number of a friend, so she could reach the driver later about a mobile vaccine clinic that her organization, El Sol Neighborhood Educational Center, was putting together for the remote desert city sometime in April.
Then it was on to the next car. And the next. As the line started moving, she and fellow health worker Erika Marroquin jogged up and down the sidewalk, taking down names, phone numbers and preexisting conditions. It was the first mild, sunny day the High Desert region had seen in weeks, and the exercise made them sweat.
After 90 minutes, the food bank was done for the day, and Garcia and Marroquin had spoken to people in 54 cars. They had found six people eager for the covid vaccine and eligible for it immediately. Ten more wanted to be put on a waiting list for leftover doses.
The rollout of vaccinations in California, as in many states, has been slow and chaotic. More than 5 million of the 24 million adults in the nation’s most populous state have been at least partially vaccinated, while an additional 5.6 million are fully vaccinated. Come April 15, all adults in California will be eligible to sign up for a vaccine, and by early summer the goal is to have plenty of vaccine for any adult who wants it.
But the country needs to get the vaccination rate to about 75% to keep the virus from easily spreading — a level called herd immunity by experts on infectious diseases. But even that figure assumes the population is homogenous in terms of vaccination. That’s why the state’s ability to stave off another covid surge may rely on people like Garcia and Marroquin — community health workers and organizers doing time-intensive, laborious work — to prevent pockets of the population with low vaccination rates in remote or isolated communities from becoming a tinderbox for a new covid surge.
“When you have geographical or social pockets of unvaccinated people, it really messes up herd immunity,” said Daniel Salmon, director at the Institute for Vaccine Safety at Johns Hopkins University’s Bloomberg School of Public Health.
U.S. measles outbreaks in recent years provide a sobering example. State and national vaccine coverage is quite high, “but then you’d have these communities where a lot of people would refuse vaccines, and then measles would be imported and create an outbreak,” Salmon said. Outbreaks have hit certain Orthodox Jewish communities in New York, Somali immigrants in Minnesota and affluent pockets of Southern California where anti-vaccine parents lived.
The coronavirus is still circulating widely in California, though at much lower levels than two months ago. The virus, especially an increasingly common, more contagious variant, could easily rip through vulnerable communities with low levels of immunity. In Adelanto, where 29% of residents live in poverty, less than 6% of the adult population had been fully vaccinated by March 20.
As of March 26, most of the more than 15.9 million vaccine doses distributed since December had gone to the healthiest, wealthiest places in the state. Community-based organizations like nonprofits and churches are clamoring for more funding — and trust — to carry the vaccine the final mile to the people they’ve been serving for years.
El Sol’s success in getting Black, Latino and other underrepresented populations vaccinated debunks the idea that these groups won’t get the shot, said Juan Carlos Belliard, assistant vice president for community partnerships at Loma Linda University Health in San Bernardino County. Loma Linda is collaborating with El Sol to staff and provide doses for clinics. The people who show up are ready for their vaccine, though some are a bit hesitant, he said.
“They’re not like our middle-class folks who are literally crying for the vaccine,” Belliard said. “These folks are still nervous about it, but you’ve removed almost all of these other barriers for them.”
El Sol’s community workers were supported by a $52.7 million combined effort from state and philanthropic funding that provided grants to 337 organizations considered “trusted messengers” in their communities. The money was pushed out to groups like El Sol that had proven track records of shoe-leather canvassing for voter registration or census surveys.
El Sol received $120,000 from the public-private initiative to support its general outreach and educational efforts for covid vaccination. But the group was in the dark about whether it would get any reimbursement for the mobile vaccination events it has organized in San Bernardino County, said executive director Alex Fajardo.
El Sol held a pop-up vaccination event Feb. 17 at Centro Cristiano Luz y Esperanza, a church located off a two-lane expressway in Adelanto, surrounded by desert scrub. Medical staffers, students and vaccines arrived from Loma Linda University Health, about an hour away, to vaccinate 250 people, and returned a month later to give people their second doses.
Patricia Perez, 47, and Rosa Hernandez, 69, a mother-daughter pair, were among those who got their vaccines at Centro Cristiano.
Perez’s father, who works in a supermarket dairy department, fell ill with covid in June and was unable to return to work for six months. No one else in the seven-member household ended up testing positive, but Rosa Hernandez is a cancer survivor and her daughter was worried about her.
Despite multiple calls to a county phone line, Perez had been unable to line up a vaccine for her mom. The family’s internet connection, in the nearby town of Hesperia, was spotty, and Perez couldn’t really navigate the websites or find any information in Spanish, the language she’s most comfortable with.
She jumped at the chance when she heard about El Sol’s pop-up event through someone at her church. Perez also managed to snag an additional dose for herself after someone didn’t show up for their appointment. Now she and her mom are fully vaccinated, Perez said, and it wouldn’t have happened without El Sol.
The group plans to do three more vaccination pop-ups in the High Desert area. But future support for its clinics, vaccine outreach and education are murky, said Fajardo.
“What is going to happen after?” he said. “When we need you, we pay you. When we don’t need you, ‘Bye-bye.’”
“That’s a very fair assessment,” said Susan Watson, program director for the Together Toward Health initiative of the Public Health Institute, the philanthropic funder behind some of El Sol’s work. “There’s an opportunity here for people to be thinking about the future, and how we do things that doesn’t necessarily leave community groups permanently on the outside, only tapped into when there’s an emergency.”
Community Coalition, a South Los Angeles nonprofit founded in 1990, also received grants from the public-private partnership to raise awareness about covid vaccines, but no additional funding to deliver vaccines to the people. Still, it mobilized staff to knock on doors, text and email eligible people to turn out for a two-week pop-up vaccination event at a neighborhood park in early March — providing 4,487 people with their first vaccine dose, said the group’s chief operating officer, Corey Matthews.
Dr. Mark Ghaly, the state’s secretary for health and human services, promised to provide more money for groups that are getting their communities vaccinated. “This is not a volunteer job,” he told KHN at a news briefing. “This is real work, and I want to be part of the team that makes that a reality for all of them.”
Los Angeles County department of public health Director Barbara Ferrer echoed that sentiment. “They were there before the pandemic started, they’ve been there the entire time during the pandemic, and they’ll be here long after the pandemic,” she said.
Whether or not those promises hold up, community groups say, they want to be part of the vaccination effort.
“Even if they don’t give us money, we’ll keep doing the work,” said Fajardo.
BLAINE, Wash. — In the shadows of covid travel restrictions, a 42-acre park on the far western edge of the U.S.-Canadian dividing line has become a popular opening in an otherwise closed border, a place where Americans and Canadians can gather without needing permission to go through an official border crossing.
What is known as Peace Arch Park has lush green lawns, gardens and a 67-foot-tall white concrete arch erected in 1921 that spans the border. It’s an often muddy, sometimes idyllic place. But the pandemic has transformed this patch of historically neutral ground into a playing field for some fundamental public health questions.
Should people from Canada, which has a lower incidence of covid-19, risk mingling with people from the U.S.? Should families who’ve masked and distanced be able to reunite for a day without quarantining? Who decides?
On a recent sunny weekend, couples and groups of up to 15 people spaced themselves across a large central lawn and filled a dozen or so picnic tables. Some kept their distance of several feet, others huddled closely. Some wore masks, others didn’t. Sounds of laughter came from kids on the large playground. And all was quiet on the eastern edge of the park, where visitors had pitched dozens of tents, rumored to facilitate conjugal visits.
An American park ranger periodically made rounds and asked groups to stay physically distant from one another. Though dozens of surveillance cameras on tall poles kept watch throughout the parking lot, no police were in sight.
Canada closed its land borders a year ago to all but some select groups, and its side of the park has stayed shut since late June. Even so, Canadians can freely hop across a small grass ditch that runs along 0 Avenue in Surrey, British Columbia, and Washington state’s side remains open after a brief closure earlier in the pandemic.
Royal Canadian Mounted Police officers stationed outside every few houses along 0 Avenue demand proof of citizenship as parkgoers exit, then suggest that returning Canadians quarantine.
That’s far different from the conventional passage through an immigration site like the one near the park, where anyone driving into Canada must sign up for a strictly enforced 14-day quarantine.
And most Americans need to be in an exempted group and have a negative covid test. Those who claim “family relationships” must be able to prove it to a border official. And, even then, they have that 14-day quarantine.
Immigration lawyer Len Saunders, who lives in Blaine, Washington, comes to the park most days to see his clients. “For many people, it’s a lifeline,” he said. “Without the park, people would be effectively separated from their spouses, fiancés and partners.”
He has two clients in that situation: Canadian Katrina Gurr, 29, and American Alexis Gurr, 32. They each live within an easy drive to the border and met online last March. “We just started talking, and then couldn’t stop,” said Alexis.
They married in July and today sometimes talk in unison.
The rules for travel are complex and changing, laxer for entering the U.S. and for air travel into Canada but still daunting. The Gurrs have visited each other for weeks-long stretches, but have spent most of their first year as newlyweds apart. Katrina has applied for a green card that would allow her to live and work in the U.S., a process she expects will take about a year.
In the meantime, Katrina walks across the ditch one day most weekends. Alexis brings a tent and a small propane tank.
“During football season, we watch the football game,” Alexis said.
“And we nap a lot, actually,” said Katrina, finishing her wife’s sentence.
For the Zuidmeer family, Peace Arch Park was a place to reunite. Father Bill and mother Denise traveled there many times in the past few months from their home 7 miles south to see their son, Peter, and his wife and child, who live north of the park. The visits became particularly important after Bill was diagnosed in December with terminal kidney cancer.
But what became Bill’s last visit to the park was nearly a failure. The rules in Canada had changed — the Mounties warned Peter that to return to Canada he’d need to show his real passport, not just the photo on his phone. The round trip to retrieve it would take an hour and a half. His father was already exhausted from the trip, and Denise needed to return the specialized medical vehicle known as a cabulance she’d rented to get him there.
Denise begged the Mounties for dispensation. For her, this was all about her husband having a chance to have what might be a final reunion, safe because it was outdoors and all involved had been careful about physical distancing. “This isn’t tourism,” she said later. “It’s families.”
The Mounties ultimately allowed Peter across for a brief and emotional hug, and Peter’s 3-year-old got to sit on his grandfather’s lap for the last time.
Bill died at home 12 days later, on March 11, after his son made one last visit the formal way involving a strict 14-day quarantine on his return.
Most of the park reunions are happier. Saunders, the immigration lawyer, said he’s seen a lot of weddings.
Some of the Canadians who live on 0 Avenue or thereabouts object to the gatherings. Canadian John Kageorge is concerned mostly about security issues, people smuggling things like guns or drugs. In addition, he said, “people need to follow public health guidelines, and they are not doing that at the park.”
Fear of covid is prevalent in Canada, so much so that “covid shaming” — social media outing and threatening of covid-positive people — has become fervent, according to The New York Times. And Americans are often blamed. “There’s a big stigma in Canada that you guys aren’t the best,” said Katrina Gurr.
The U.S. has an appreciably higher rate of covid infections and deaths — more than 92,000 cases per million people compared with Canada’s 26,000 per million as of Wednesday. But whether SARS-CoV-2 is being spread outdoors or in the tents of Peace Arch Park is anybody’s guess. After the issue was raised by the Canadian media in February, the British Columbia premier responded that his chief health official had told him no outbreaks were attributable to the park.
The Public Health Agency of Canada attributes just 0.3% of March covid cases to international travel. But that estimate is likely to be low, said Kelley Lee and Anne-Marie Nicol, global health policy experts at Simon Fraser University. In an essay in The Conversation, an online news site, they note that only air travelers are monitored. That leaves out the people in Peace Arch Park and essential workers like truckers and health care workers who regularly drive across the border.
“Essential travelers remain untested so we cannot know what risk they pose,” Lee wrote in an email.
In the absence of clear information about spread, the fight over the park remains a political one. Two Liberal Party of Canada members of the provincial legislature have pressed British Columbia’s premier, a member of the New Democratic Party, to ask Washington Gov. Jay Inslee, a Democrat, to close the American side. But the premier turned them down, saying that international borders were an issue for the federal government in Ottawa.
Inslee spokesperson Mike Faulk said Washington discourages people from gathering but did not indicate any action was imminent. Last October, Prime Minister Justin Trudeau said the border closures would last “as long as we feel that they need to last.”
The Canadian side of the arch says: “Brethren Dwelling Together in Unity.” For now, at least, that’s true in the park, but not along the rest of the 4,000 miles of border between the Atlantic and Pacific oceans. Saunders, the Gurrs and Zuidmeers plus many other border watchers are not expecting any changes soon.
At 70, Linda Findley has long been active in her small town of Fort Scott, Kansas, which sits more than an hour away from any major city.
Findley, whose husband died in an accident just after the local hospital closed, helps with the Elks and fundraising, and — like many people in this part of the country — doesn’t think covid-19 is that dangerous.
“I don’t even know what I think about it,” Findley said recently. “I don’t know if I trust the testing because it’s so messed up or … I’ve had nieces and nephews, that’ve had it. I’ve lost good friends to it, or supposedly it’s to that.”
Findley said she just isn’t sure that every case reported as the coronavirus really is the virus: “Everything seems to be coronavirus. I mean, it’s just … no matter what somebody has, it’s coronavirus. I don’t know whether it is or isn’t.”
Fort Scott is one of nearly 140 rural communities that have lost a hospital in the past decade. Mercy Hospital Fort Scott closed in December 2018.
Even though critically ill patients now must travel to hospitals farther away, Fort Scott residents haven’t seen that as a pandemic-related problem. Rather, not having a hospital doesn’t really come up when people here talk about covid.
Dave Martin, the former city manager, is pretty sure he caught covid at work last August.
“You know, when I got it, I was in good health and it did take me a while to recover,” Martin said. “I do remember waking up one of my bad nights and thinking, when I was running a temperature and not feeling very well. And I’m thinking, ‘Oh, wow, this could kill me.’”
But Martin also thought that any number of unpredictable events could end a person’s life. “So it didn’t really stick with me,” he said.
After recovering, the 62-year-old Martin went ahead with his retirement. He took his wife to Disney World and then they hiked Yellowstone National Park.
That casual attitude toward the dangers of covid worries health care leaders in Fort Scott. Jason Wesco helps lead the regional health center that took over primary care services when the hospital closed. One clinic occupies part of the same building that used to be Mercy Hospital.
Wesco said his family is careful about wearing masks and not gathering in groups, and he believes they are in the minority in the area.
“I think most people just keep going. They have maybe modified a little bit. Maybe they put on a mask in public,” Wesco said. “I think life here has changed a lot less than it’s changed in D.C. And I think we’re seeing the impact of that, right?”
The pandemic hit the area hard in the fall, peaking in late December.
One in 11 people in Bourbon County, where Fort Scott is the largest community, has been infected by covid, according to national analysis.
Two dozen of the county’s 14,000 residents have died of covid. And most people know someone who had the virus and survived — but residents just seem tired of talking about it.
Community volunteer Findley said she won’t get a vaccine.
“How did they come up with a vaccine that quickly? And how do they even know for sure it’s even working?” Findley wondered.
The three vaccines approved by federal regulators in the U.S. are being given out to millions, and their efficacy has been shown through massive clinical trials in the U.S. and globally.
But Findley’s skepticism is fairly common in southeastern Kansas and across rural America. Nationwide, a smaller share of rural residents say they will definitely get a covid shot compared with their more urban counterparts. More than a third, 35%, of those who live outside big-city borders said they would probably not or definitely not get vaccinated, compared with about a quarter of suburban and urban residents, according to a poll by KFF. (KHN is an editorially independent program of the foundation.) An NPR/PBS NewsHour/Marist Poll found that 47% of Trump supporters said they would not get a vaccine; 75% of Bourbon County residents voted for Trump in 2020.
Factors such as age and occupation also play a role in attitudes toward the vaccines. And — as Findley and others in Fort Scott noted — rural Americans are more likely to think of getting a vaccine as a personal choice and believe the seriousness of covid is exaggerated in the news.
Findley said she believes that there is a very bad virus, but also that the media have brainwashed people. The news has “everybody running scared,” she said. “I don’t know why they want to do that, but that’s what I feel like.”
About 50% of rural residents say the seriousness of the coronavirus is generally exaggerated in the news, according to the KFF poll. And 62% see getting the vaccine as a personal choice — rather than a necessary social obligation.
Wesco, executive vice president of the Community Health Center of Southeast Kansas, said he has hope more area residents will begin to see the vaccines as necessary.
“There’s hesitancy,” Wesco said, adding that he believes hesitancy is declining as vaccines become more abundant.
When residents are directly provided the opportunity to get a vaccine, they consider it more seriously, he said. And the more people they know who have gotten a vaccine, the more likely they will be to get a shot.
The Community Health Center, like other health centers nationwide, is receiving direct federal shipments of vaccines. Currently, the clinic has a waitlist and is giving out as many doses as it can get its hands on.
Sarah Jane Tribble is reporter and host of “Where It Hurts,” a narrative podcast created by KHN and St. Louis Public Radio about the people of Fort Scott and how their health care transformed after the hospital closed. “Where It Hurts” is available wherever you get your podcasts.
What's happening in Mendocino echoes the frustrations, successes and stumbles felt by counties and clinics across the state during this turbulent transition.
This article was published on Thursday, April 1, 2021 in Kaiser Health News.
In California's Mendocino County, public health officials and community clinics say they have hit their vaccination stride.
Despite the county's remoteness and its largely rural population spread among wooded mountains, rugged coastline and idyllic vineyards, about 40% of eligible adults have received at least one dose of a COVID-19 vaccine.
But now they face renewed turbulence as health insurer Blue Shield of California takes over the state's vaccine program with the mission of speeding up vaccinations.
Instead of tracking down the most vulnerable of the county's roughly 68,000 eligible residents, community clinics and healthcare workers will be learning data systems. Instead of administering vaccines, they'll be navigating new software. And instead of strengthening collaborations with the county that have helped get vaccines into arms, they'll be forging relationships with the insurance company.
"I'm not quite sure what issue the state was trying to fix when they moved to this contract," said Mendocino County CEO Carmel Angelo.
What's happening in Mendocino echoes the frustrations, successes and stumbles felt by counties and clinics across the state during this turbulent transition.
Counties had been receiving vaccines from the state before turning around and distributing them to clinics in their areas. In March, the state started transferring that responsibility to Blue Shield, which will supply doses to most providers directly beginning this week as part of its $15 million no-bid contract with the state.
Counties will continue to receive doses for their own vaccination sites and will be able to share some with community clinics. But they will no longer be orchestrating how to allocate doses to clinics countywide. That is now Blue Shield's responsibility.
That crazy-quilt system makes it more complicated for clinics and counties, not simpler. "We've been very nimble in terms of giving certain amounts to certain people," said Mendocino County Public Health Officer Dr. Andrew Coren. Now, "it's going to be hard for us to manage where there's more need, or less."
Before Blue Shield took over, county public health officials began holding Friday meetings with local providers, including hospitals and community health centers, something that didn't occur before the pandemic.
The cooperation helped providers vaccinate people in hard-to-reach pockets of the county because clinics could discuss which ones had extra doses and which ones needed more, said Scott McFarland, CEO of MCHC Health Centers, which operates three clinics in Mendocino County and one in Lake County.
"It's why we have seen success," McFarland said.
Of the six community health center organizations in the county, all have signed on with Blue Shield or are in talks with the insurer.
Chloë Guazzone-Rugebregt, executive director of Anderson Valley Health Center in the inland town of Boonville, said the doses administered in Mendocino County have been hard-won, the result of hours of personal outreach to vulnerable and eligible communities.
Guazzone-Rugebregt said she is reluctantly starting over with Blue Shield because she feels she has no choice. She received the contract on a Friday night in mid-March and was told to sign by the following Tuesday if she didn't want to lose her allocation — though she still has no idea how many doses are promised.
Erika Conner, a Blue Shield spokesperson, said the insurer is trying to enroll as many providers as possible into the state's vaccination system, and work with them once they join.
"Our goal is to build a network that reaches every corner of our state, especially those communities that have been disproportionately affected by this pandemic," she wrote via email.
McFarland said he looks forward to the streamlined process he hopes Blue Shield will bring. He isn't worried about his allocation because his large clinics have been working with Adventist Health Ukiah Valley to set up weekly mass vaccination events that have administered up to 2,000 doses a day.
He sees no reason why his collaboration with the hospital can't continue.
"It may take a week, it may take two weeks, but in the end, I think it's going to be a better system," McFarland said.
Darrel Ng, a spokesperson for the California Department of Public Health, said the the Blue Shield project has already improved vaccination distribution statewide, especially in communities that are most vulnerable to the virus. For instance, he said, vaccines in those communities went up by 30% from Feb. 20 to March 20.
"That's evidence that the state's actions are not just working, but helping to promote equity," Ng said.
The biggest change on the horizon, and the one that has the potential to cause the most disruption for clinics, is the compulsory use of My Turn, the state's centralized vaccine website. It's meant to serve as an online hub where patients can find appointments and providers can order doses and set up clinics, all while seamlessly feeding data back to the state.
Mendocino County was one of the first rural counties to test it out, Coren said. Right away, there were problems.
For instance, Mendocino expanded vaccine eligibility to people with certain health conditions on March 1, two weeks before the state guidelines did the same. That was within the county's authority, but My Turn couldn't make sense of the conflicting eligibility categories.
So, for two weeks, providers logged patients into My Turn under a different category. That means someone who became eligible because they had cancer may have been coded as an agricultural worker, teacher or some other eligible profession.
But using tricks to get around the website's quirks wastes time and skews county and state vaccination data, which could lead to future doses going to the wrong places or people, problems My Turn was specifically designed to prevent.
"It represents a big IT bureaucracy, so there can be major screw-ups, where, in the past, there were small screw-ups," Coren said. "So it's not perfect, it's not going to be perfect, but I think we're seeing that it's improving."
Ng said issues like that will stop once every county is using My Turn and vaccinating by the same eligibility rules this week. On Thursday, everyone 50 and older becomes eligible, regardless of their job or health status.
Focusing on data entry and website problems leaves clinics with less time to address the looming challenge of getting everyone vaccinated — not just the first wave of enthusiastic takers, Coren said.
"The problem is that it does take our eyes and our attention from some of the local issues," like reaching vulnerable groups or overcoming language barriers, he said.
In the county's grape-growing areas, many farmworkers don't speak English, don't have legal status, can't access high-speed internet — or all three.
The way Guazzone-Rugebregt's clinic has been able to reach them, and other vulnerable populations, is by being patient, flexible — and putting in the time, she said.
For instance, instead of relying on the population to find appointments online and provide all the right documentation, she's been working directly with employers in the area, getting rosters of agricultural workers or other eligible professions to work from.
Lucresha Renteria, executive director of Mendocino Coast Clinics, serves 10,000 people spread across 52 miles of coastline and 20 miles inland.
Getting people vaccinated requires personal connections, not sending them to a scheduling website or statewide hotline, she said.
"People need to trust who they're interacting with in order to put themselves in a position to get this vaccine," Renteria said. "Using their known medical providers, a name people already trust, is a great way to do that in a small rural community."
Indiana's Medicaid expansion — with its "personal responsibility" provisions that require enrollees to pay monthly premiums and manage health savings accounts — proved no better at improving health and access to care than other state expansions, a federally commissioned study found.
Even when compared with states that did not expand Medicaid, Indiana showed only mixed results in improving the health of low-income residents, the report said.
Indiana's expansion program — known as the Healthy Indiana Plan — has been closely watched not just because of its complexity, but also because its chief architects were former Vice President Mike Pence, who launched the effort as governor in 2015, and his top health consultant, Seema Verma, who directed the Centers for Medicare & Medicaid Services under President Donald Trump.
In late October — a month before the evaluation report was officially completed — the Trump administration extended Indiana's Medicaid expansion waiver by 10 years. Typically, waivers that test new concepts in Medicaid must be renewed every three years.
One important limitation of the study was that it did not evaluate any health or Medicaid administrative data directly related to Healthy Indiana enrollees, but rather reviewed information for all childless poor adults under 65 in the state. The researchers then compared the health status and health access results of Indiana's low-income adults with similar groups in states that had expanded Medicaid and states that had not.
CMS had a draft of the report, conducted by two private research organizations, for nearly a year before releasing it, said a source who did not want to be named because they were not authorized to speak on the issue.
Indiana's expansion under the Affordable Care Act covers 570,000 low-income adults. In the 38 states that have expanded, Medicaid is available to everyone with incomes under 138% of the federal poverty level, or $17,774 for an individual.
Pence and supporters viewed the "skin in the game" approach as a better way to expand coverage and win over reluctant Republicans who were ideologically opposed to expansion. Pence pitched it as a model for other conservative states.
"Hundreds of thousands of Hoosiers have enrolled in this one-of-a-kind program and are taking ownership of their healthcare, which is a testament to the program's continued success," Pence said as governor in March 2016.
Indiana Medicaid officials delayed approving the release of data to the federally funded researchers, which left them without enough time to survey the program's enrollees, the report said.
That limited the federal evaluation to using Census surveys to measure changes in the health of Indiana's poor adults, not just those on the Healthy Indiana Plan. Without beneficiary surveys, the federally funded researchers lacked detailed insights about whether the program was working for patients.
The researchers did conduct focus groups with about 50 Healthy Indiana enrollees and met with key stakeholders such as health providers, Medicaid health plan representatives and state health officials.
"There is little evidence of systematic changes in healthcare access and affordability, health behaviors, or health status in Indiana in 2017-18 relative to the comparison states that did not expand Medicaid, those that expanded Medicaid without a demonstration, or those that expanded Medicaid with a different demonstration," concluded the report by researchers from Social & Scientific Systems in Silver Spring, Maryland, and the nonpartisan Urban Institute.
The study noted it could take several years after expanding health coverage to show an impact on the overall health of a population.
Susan Jo Thomas, executive director of Covering Kids and Families of Indiana, an advocacy group, noted that while expansion helped people gain coverage it did not necessarily improve enrollees' health or health access. That's because Medicaid enrollees still faced delays in getting doctor appointments and often have multiple chronic health conditions, complicating preventive care, she said.
"People have a ticket to the circus, but the circus is not necessarily coming to town," she said about access to care issues.
Indiana Medicaid officials refused to comment on the federal evaluation report. The state commissioned its own review of the expansion by the Lewin Group, a subsidiary of UnitedHealth Group. That study won't be completed until 2022. An interim Lewis report issued in 2019 said it did not have data to determine whether the strategy improved enrollees' access to care.
In 2015, Pence and Verma tried to stop the federal evaluation, noting that the state was hiring an independent evaluator. They also opposed the federal government's selection of the Urban Institute because of critical comments on parts of Indiana's strategy.
The Indiana Medicaid expansion helped reduce the number of uninsured in Indiana from about 15% in 2010 to 9% in 2019, Census data shows.
In a statement to KHN, Verma said the program Indiana chose showed improvements for low-income adults. "The report makes clear what the people of Indiana have known all along … the Healthy Indiana Plan is a bipartisan program that is widely popular, successful and has improved the lives of thousands of Hoosiers," she said. She did not respond specifically to the report.
Pence did not respond to a request for comment.
Compared with states that did not expand Medicaid, Indiana saw a significant improvement in the health of low-income adults who had an annual checkup and had their own doctor, according to the report. But there was no significant difference in rates of getting an annual flu shot or the number of people who said they had no unmet medical need due to cost.
Compared with other states that expanded Medicaid, Indiana showed no significant differences in any health access or health status measures examined, the report found.
The Healthy Indiana Plan remains one of the most complicated Medicaid expansion plans. Enrollees must pay a monthly fee on a sliding scale into what's called a Power account, similar to a health savings account, although collection of those fees has been waived during the COVID public health emergency. This qualifies them for a plan called HIP Plus, which includes dental and vision care and has no copays unless people unnecessarily seek care at an emergency room. The monthly contributions vary by income, though about half of enrollees pay only $1 a month.
HIP then uses the money in the Power account to pay for covered services. If people with incomes between 100% and 138% of the poverty level fail to pay the monthly contribution, they lose their health insurance and are locked out of reapplying for coverage for six months.
People below the poverty line who fail to pay fall back to HIP Basic, which excludes dental and vision and requires hefty copays that can be up to $8 per doctor visit and $75 per hospital stay.
Enrollees who seek certain preventive care services such as checkups can get a reduction in future monthly premiums.
Pence and other supporters of the strategy said enrollees would appreciate their coverage more by paying something for it instead of getting it free. But Thomas said many enrollees are still confused about how the Power accounts work, and she questioned the point of requiring a premium if the amount is only $1 a month for many enrollees.
Judith Solomon, a senior fellow with the left-leaning Center on Budget and Policy Priorities, said CMS should not have extended Indiana's expansion waiver by a decade given the many questions that remain about how well it's working.
She noted that in the waning days of the Trump administration CMS also gave Texas and Florida — two states that did not expand Medicaid — 10-year waiver extensions on Medicaid programs that would ensure they continued to get billions in federal funds.