Financially ailing LRGH gets another cash infusion

LACONIA — LRGHealthcare, which has furloughed about half of its staff as it struggles with the financial effects of the COVID-19 pandemic, got some good news Friday in the form of a $4 million cash infusion from the federal government.

A week ago the health care system received $5.25 million from a state emergency fund that allowed it to keep its doors open with reduced staff.

LRGH President and CEO Kevin Donovan said he was grateful to the work of New Hampshire’s congressional delegation to secure these federal funds, which come from an initial installments of grants that are part of a $100 billion hospital stimulus package.

“The additional $4M would normally equate to one week’s worth of expenses, but the recent furlough actions, while unfortunate, will make this money last longer,” Donovan said in an email.

Employees have been told to expect a furlough of as long as 120-days, and there's no indication that the state and federal money spells an early end to the health system's austerity measures.

“At this point, between the furloughs, the $5.25M loan from the State of New Hampshire and the approximate $4M from the Federal government, we believe we are okay financially for a few months,” he said. “Like everyone else, we need to wait and see what the pandemic holds before we can make decisions on ramping back up services, however.”

The furlough of 500 full-time equivalent positions equated to about 600 people because some work only part time.

The health care system, already facing major financial challenges, announced the furlough April 3. Its revenue declined greatly after it ended profit-generating elective procedures about a month ago to create capacity for an expected surge in COVID-19 patients.

A news release from the congressional delegation said New Hampshire health care providers received $164.5 million in grants from the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

“New Hampshire hospitals, physicians, nursing facilities, community health centers and other health care providers have been pleading for funding to keep the doors open and deal with increased expenses and revenue shortfalls due to COVID-19,” said Sen, Jeanne Shaheen. “The federal dollars dispersed today could not have come soon enough.”