Beleaguered Hospitals Seek Advance Payment From Insurers

An earlier version of this story incorrectly stated that a Wakely study of COVID-19-related risk to insurers only examined the risk to commercial carriers. While the study did not estimate risk to traditional Medicare or Medicaid, it did include risk to Medicaid managed care and Medicare Advantage plans. This version of the story has been corrected.

In a series of open letters dated April 1, the American Hospital Association (AHA) asked payers to consider moving temporarily to an advance or scheduled payments model because hospitals’ cash flow is strained by the COVID-19 pandemic. Experts say the need for liquidity is very real, but what hospitals are requesting may not be feasible.

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Peter Johnson

Peter Johnson

Peter has worked as a journalist since 2011 and has covered health care since 2020. At AIS Health, Peter covers trends in finance, business and policy that affect the health insurance and pharma sectors. For Health Plan Weekly, he covers all aspects of the U.S. health insurance sector, including employer-sponsored insurance, Medicaid managed care, Medicare Advantage and the Affordable Care Act individual marketplaces. In Radar on Drug Benefits, Peter covers the operations of (and conflicts between) pharmacy benefit managers and pharmaceutical manufacturers, with a particular focus on pricing dynamics and market access. Before joining AIS Health, Peter covered transportation, public safety and local government for various outlets in Seattle, his hometown and current place of residence. He graduated with a B.A. from Colby College.

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