Kaiser to tap $2.4B credit line for COVID-19 response

Oakland, Calif.-based Kaiser Permanente is taking a number steps, including drawing on its existing line of credit, to respond to the COVID-19 pandemic, according to an April 13 regulatory filing.  

To conserve personal protective equipment and limit exposure to the virus, Kaiser said it has closed or scaled back services at medical offices in some areas and postponed most nonemergent procedures. Kaiser also has ramped up its use of telehealth and is encouraging its health plan members to use its mail-order pharmacy service. 

The health system said it intends to draw on the full $2.4 billion available on Kaiser Foundation Hospitals' existing credit agreement to provide operational flexibility in its COVID-19 response efforts. 

Kaiser is one of several health systems drawing on existing lines of credit during the COVID-19 pandemic. Other health systems are trying to secure new lines. As of April 13, about $1 billion in new agreements had been secured, according to an analysis by Bloomberg

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