Mercy Oklahoma

PROJECT PURPOSE

The change in patient mix as a direct result of the COVID-19 pandemic has led to Mercy hospitals in Oklahoma losing their 340B status. This is causing a significant financial hardship. Specifically, Mercy hospitals in Ada, Ardmore and Oklahoma City will combined lose approximately $27 million. Our organization's ask is not for incremental or increased funding; we are asking to not lose existing funding used to help offset the significant support we provide to those who need it most in Oklahoma. We ask that 340B hospitals should not be inadvertently penalized because of a short-term change in patient mix caused by the COVID-19 pandemic.

EVIDENCE

Mercy has and will provide all of the supporting evidence needed to demonstrate that the loss of 340B was an unintended consequence of meeting the needs of our Oklahoma patients. We are happy to attest to the accuracy of the data which has already been filed on our fiscal year 2021 cost reports with the Centers for Medicare and Medicaid Services.

POPULATION DESCRIPTION

Mercy Oklahoma has dedicated all of our resources to meet the communities' needs and care for the influx of COVID-19 patients. The financial burden has been significant, with investments made in labor and negative impacts to revenue when we have had to postpone non-emergency care. Because of the changes to hospital operations and the longer length of stay, which is twice as long for COVID patients, we have lost 340B eligibility at 3 of our Oklahoma facilities. This is a clear unintended consequence directly tied to meeting the care needs of the communities we serve. Annually this is a loss of approximately $27 million dollars which offsets only 1/3 of the total uncompensated care Mercy provides in Oklahoma to those who need it most. Not having the discounted drug pricing will have a negative impact on our ability to provide services to patients as we look forward. Mercy Oklahoma continues to play a vital role during the pandemic. The pressures of the pandemic and loss of 340B eligibility is putting Mercy in a position to find ways to solve for this material financial loss at a time when we are already addressing other significant financial headwinds and complications in meeting our communities' healthcare needs.

PERFORMANCE MEASURING

Mercy has the needed reporting and documentation to show the variables which resulted in the loss of 340B. Through this pandemic relief funding, as Mercy is requesting the replacement of funds lost associated with 340B, we will provide the exact amount of 340B savings lost at whatever level of detail is required. Furthermore, as fund replacement will enable Mercy to continue to provide the same or greater level of community support for our most vulnerable patients that we provide each year, we will provide documentation showing this continued community benefit support.

ONGOING INVESTMENT AMOUNT

$

ONGOING INVESTMENT DESCRIPTION

None

ONGOING INVESTMENT REQUIRED

Able to continue operation without additional funding from the State of Oklahoma