ROCHESTER, Minn. — Mayo Clinic topped the list of Minnesota companies to receive funds from the COVID-19 bailout.
The Rochester-based health care giant received nearly $170 million as part of the $2 trillion CARES act, short for Coronavirus Aid, Relief, and Economic Security.
The data are listed within the state-by-state covidstimuluswatch.org, an analysis provided by the federal spending advocacy nonprofit Good Jobs First.
All told, 189 Minnesota companies received a collective $902.2 million from the Public Health and Social Service Emergency Fund within the CARES Act. Minnesota was the 17th-largest recipient of bailout funds in the country. Seven of the top 10 recipients in Minnesota were health care companies.
Provider systems were awarded funds based upon their use of Medicare dollars. The funds were meant to offset costs of preparing for the pandemic, as well as revenue lost while elective procedures were on hold. Additionally, recipients "are banned from sending 'surprise' balanced bills to any presumptive or actual COVID-19 patient," according to the legislation.
Mayo is reported to anticipate $3 billion in losses for the year. The clinic recorded revenue approaching $13.8 billion last year, and posted a surplus of $1.08 billion.
To offset its expected losses in 2020, beginning in March, it implemented furloughs and paycuts, tapped $900 million in reserves and halted building projects.
"Our commitment to lead and support the needs of our patients, staff and communities during the COVID-19 pandemic has required significant investments in preparedness, treatment, testing and research," said Duska Anastasijevic of Mayo Clinic Public Affairs in a statement. "At the same time, the postponement of non-emergent surgeries and procedures has placed significant strain on Mayo Clinic’s finances."
The clinic calls the funds "a welcome relief," and adds that "the funds received will not cover the significant losses incurred as a result of the COVID-19 pandemic, but will lessen the overall financial impact and complement extensive financial stabilization strategies."
Combining other state and federal assistance, the clinic has received $240 million it does not have to pay back.
Fairview Health Services came in second in Minnesota with $116. 9 million in COVID-19 stimulus funds.
"M Health Fairview’s priorities for CARES funds include COVID-critical supplies, our Bethesda COVID hospital, replacing lost revenue from elective surgeries and staff training," said Kaylee Skaar, communications specialist for M Health Fairview.
Allina Health System was third in COVID-19 stimulus funds, taking in $64.1 million.
"The funds Allina Health has received from the CARES Act as an 11-hospital health system have been allocated toward offsetting some of the expenses and revenue reductions incurred," said Tim Burke, public relations of Allina Health in a statement.
Burke said Allina also has faced reduced patient volumes because of the need to preserve personal protective equipment and "has made important investments in equipment, supplies, personal protection equipment, technology, testing, and facilities to respond to the COVID-19 pandemic."
"As part of surge planning efforts and compliance with the Governor's executive order, substantial financial investments have been made. The financial impact of essential investments coupled with decreased revenues related to reduced patient volumes was a sudden and significant impact to the organization."
Burke said Allina Health funding from the CARES Act "has been allocated toward offsetting some of these expenses and lost revenues, but is substantially less than incurred over the past two months."
Other hospitals statewide to have received funds included Hennepin Healthcare System at $19 million, St. Cloud Hospital at $17 .7 million, Children's Health Care at $16.8 million, and North Memorial Health care at $14.4 million.
North Dakota top 5 hospital bailouts
- Trinity Hospitals: $23 million
- Altru Health System: $10.7 million
- Innovis Health LLC: $7.7 million
- St. Alexius Medical Center: $5.9 million
- West River Health Services: $4.4 million
Minnesota top 5 hospital bailouts
- Mayo Clinic: $169.9 million
- Fairview Health Services: $117 million
- Allina Health System: $64.1 million
- Hennepin Healthcare System Inc.: $19 million
- St. Cloud Hospital: $17.8 million
South Dakota top 5 hospital bailouts
- Sanford Health: $71.9 million
- Avera Health: $34.7 million
- Rapid City Regional Hospital Inc.: $13.2 million
- Sacred Heart Services: $12 million
- Huron Regional Medical Center Inc.: $4.7 million
Date source: COVID Stimulus Watch
Minnesota Department of Health COVID-19 hotline: 651-201-3920.
COVID-19 discrimination hotline: 833-454-0148
Minnesota Department of Health COVID-19 website: Coronavirus Disease (COVID-19) website.