HHS begins distributing $7.5 billion in COVID-19 relief funds to rural providers

The Department of Health and Human Services today began distributing $7.5 billion of the $8.5 billion in American Rescue Plan Act payments designated for providers who serve rural Medicaid, Children’s Health Insurance Program, and Medicare beneficiaries. In addition, HHS stated that in the coming weeks, it plans to distribute the first wave of Provider Relief Fund “Phase 4” payments and will continue to process remaining ARPA rural applications. 

In today’s announcement, HHS stated that more than 40,000 providers will receive ARPA rural payments, with an average payment of $170,700. The Health Resources and Services Administration received more than 55,000 ARPA rural applications and processed 96% of them; providers who have not yet received any communication regarding their payment determination will be notified as soon as HRSA completes the review and processing of the remaining applications. Providers can use these funds to address workforce challenges, as well as for lost revenues and increased expenses caused by the COVID-19 pandemic.