Executives must take pay cuts for Arizona hospital to get state aid

The state of Arizona will help Santa Cruz Valley Regional Hospital avoid closure during the COVID-19 pandemic if hospital leaders agree to certain conditions, according to the Green Valley News

Earlier this month, Green Valley, Ariz.-based Santa Cruz Valley Regional Hospital warned it would close without additional funding from the state. Like many hospitals across the country, Santa Cruz Valley Regional is facing a cash crunch after canceling non-emergency procedures to free up staff and supplies for COVID-19 patients.

On April 14, the hospital was notified that the state is willing to provide financial support. A senior policy advisor to Arizona Gov. Doug Ducey outlined certain stipulations to receiving the funding in a letter to hospital CEO Kelly Adams. 

While the hospital is receiving emergency state aid, no payments can be made to Santa Cruz Valley Regional's owners, investors, board members or consultants, and hospital executives must take a 20 percent pay cut and forgo any bonuses or other salary enhancements. The hospital will also be required to open its books to the state, quickly provide financial documents requested by the state, and remain in compliance with CMS license requirements, according to the letter obtained by the Green Valley News

Mr. Adams, who said the hospital's executive team has already taken a 30 percent pay cut, told the Green Valley News he's encouraged by what the state has put forth. He said the hospital is seeking $3 million in funding from the state. 

Any aid from the state will be in addition to federal funding Santa Cruz Valley Regional obtains. HHS sent the hospital $660,000 in emergency funding on April 10. The money came from the $100 billion designated for hospitals in the Coronavirus Aid, Relief, and Economic Security Act. 

More articles on healthcare finance:
State-by-state breakdown of federal aid per COVID-19 case
CMS pitches 3 payment rules for 2021: 5 things to know
CMS sends $51B in advance payments to hospitals

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