Health organizations and non-profits in Summit County that receive federal funding are preparing contingency plans in case the federal government defaults on Tuesday August 2.
Those locally who may be affected by the federal default include doctors, hospitals, those who receive Social Security income and elderly patients who depend on Medicare payments to pay for their medical care.
A large number of people will be affected if a debt solution is not agreed upon in Washington. If no agreement is made by the August 2 deadline, the country would just have cash coming in from tax revenues and the president would have to make a choice on what to pay, leaving certain obligations to wait.
According to the Akron Beacon Journal, 40-45 percent of the bills the government usually pays may not see payment if a default happens. The government makes about 80 million payments each month.
Area nonprofits such as the United Way of Summit County (90 N. Prospect Street in Akron) and Akron-based Mature Services for seniors (415 S. Portage Path in Akron) express concerns over a possible default which may effect funding they receive to operate and provide support to local communities.
Mature Services receives funding from the federal government that makes up 46 percent of their budget.
Summa Health System in Summit County, who also happens to be the county’s largest private employer and biggest hospital system that relies on federal funding, 47 percent of its hospital revenue is dependent on Medicare payments. The interim chief financial officer at Summa says operations will continue if a default happens, though payments may be delay for services.
As area health organizations and non-profits continue to monitor Washington, they are making plans to include what will be done if they don’t receive funding. Just like the president will have to make decisions on what needs to paid and what will have to wait, local health organizations and non-profits are planning to do the same.
Local contingency plans in works as federal default looms – Akron Beacon Journal/Ohio.com