LYNN — The Lynn Community Health Center has received a $1.288 million stimulus grant as a result of the sweeping coronavirus economic relief bill that passed through Congress last month, according to an announcement from U.S. Rep. Seth Moulton (D-Mass.).
Considered the largest economic rescue package in history, the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act earmarked $1.32 billion in immediate additional funding for community health centers, but it wasn’t clear how those funds would be distributed until Monday.
Dr. Kiame Mahaniah, Lynn Community Health Center CEO, knew the center’s grant would be between $850,000 and $1.3 million, and was pleased that their allocation was near the maximum.
He said the funds were distributed fairly, based on how many people are served at each health center, rather than being dispersed equally.
“Obviously, as a health center, we’re very grateful to be getting that money from the stimulus bill,” said Mahaniah. “Given our need, anything helps, given our size and the services we provide.”
Mananiah said the funding will go toward making up for the loss of revenue and additional expenses the health center has incurred over the past four weeks due to the coronavirus pandemic.
He said the grant amount is equivalent to revenue lost from about four weeks of missed visits from not being able to see patients in person. For instance, the center has closed its dental services and eliminated all elective surgeries.
Over the first three weeks, Mahaniah said there was about a $960,000 loss of revenue, which has been coupled with $118,000 worth of unexpected expenses, such as purchasing additional personal protective equipment (PPE), laptops and equipment.
“This (grant) just about covers that, which gives us a chance at financial stability,” said Mahaniah. “It allows us to give us some breathing space so we can configure how to be financially sustainable in this new reality. It decreases the pressure on us and allows us a chance to ramp up our telehealth visits.”
As of Monday, the community center’s switch to telehealth, or virtual patient visits, has cost about $100,000. However, Mahaniah said there are about 400 employees using the telehealth service, which means that anything the health center is paying those employees adds to that cost.
He projects the service will wind up costing the center about $250,000, which includes properly training employees and securing the right equipment for everyone.
“Everything we did is emergency measures,” said Mahaniah. “We have to go back to make sure everybody understands the standards. That money will be put to use right away.”
According to Moulton’s office, Lynn Community Health Center will receive the grant through the U.S. Department of Health and Human Services.
“Health care workers are on the front line, and local clinics are maxing out their reserve funds to respond to the coronavirus,” said Moulton in a statement.
“These grants will help health clinics meet the moment and keep us safe. There are still far too many people lacking protective equipment and tools that keep people alive, like respirators. I’m going to keep fighting for the heroes in our community saving lives and so every American can get tested and treated for the coronavirus.”
As grateful as Mahaniah is for the federal assistance, he said the grant will not cover the financial impact the coronavirus continues to have on the health center.
He has estimated the health center will end up being at least $2 million behind with its budget, when factoring in lost revenue and unanticipated expenses. Even with the grant, the health center will still need between $750,000 and $1 million in additional funding, Mahaniah said.
Like many other healthcare centers, clinics and hospitals, Lynn is short on PPE, but its real strain has been the shortage of COVID-19 testing kits. Mahaniah said the health center is only able to conduct a few tests a day because of the low supplies. He said he had hoped to run a drive-through testing site downtown, but can’t because of the shortage.
Mahaniah said the health center will soon launch a major fundraising campaign to try to raise the remainder of that $2 million projected loss.
He’s also supportive of a new bill for nonprofits, the Save Organizations that Serve (SOS) America Act that Moulton and U.S. Rep. Brian Fitzpatrick (R-Pa.) are trying to push through Congress as part of the next round of stimulus funding that’s being discussed at the federal level.
U.S. Rep. Richard Neal (D-Mass.), chairman of the House Ways and Means Committee, is negotiating the bill with House, Senate and White House leaders. Moulton’s team is hopeful some form of the bill will be picked up in the next emergency relief package that Speaker Nancy Pelosi (D-Calif.) is saying could top $1 trillion.
The proposed SOS America Act would provide emergency funding for nonprofits, create a universal charitable deduction, and would eliminate the 500-employee cap for nonprofits to qualify for the Small Business Loans (SBA) created through the last relief package.
That would provide some relief for the Lynn Community Health Center, which has about 600 employees, and therefore does not qualify for SBA loans, Mahaniah said.
“We’re very supportive of the SOS America Act that Congressman Moulton has been pushing,” said Mahaniah. “Like many nonprofits, we’re self-insured when it comes to unemployment, so the benefits that the other people are enjoying in terms of unemployment coverage don’t really apply to us.”
On Tuesday, Mayor Thomas M. McGee announced there have been three deaths and 317 confirmed cases of the coronavirus in the city, and Mahaniah expects those numbers to continue to rise significantly.
Health officials have said the virus will reach its peak over the next two weeks, and Mahaniah said it would likely take until July for most of it to pass.
Nurses and doctors at the health center are nervous about coming into work and seeing high-risk patients, Mahaniah said, but they understand the importance of their role.
“Our calling is to help others,” said Mahaniah. “So, I think people are stressed, people are anxious, but people are super professional and know what they’re doing is A: great for the community of Lynn and B: absolutely necessary if you want the hospitals to remain focused on the most acutely ill.”
