Special Bulletin: HHS Announces Distribution of Funds to Hospitals with High COVID-19 Admissions and Rural Providers

The Department of Health and Human Services (HHS) today announced that it will distribute an additional $22 billion in funds from the Public Health and Social Services Emergency Fund the week of May 4:

• Hospitals with at least 100 COVID-19 inpatient admissions through April 10, 2020, will receive $12 billion in funds.
• General acute-care hospitals, critical access hospitals, rural health clinics and community health centers located in rural areas will receive $10 billion in funds.

For more details on the announcement, see the HHS press release.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act and Paycheck Protection Program and Health Care Enhancement Act included $175 billion in the Public Health and Social Services Emergency Fund to reimburse health care providers for health care-related expenses or lost revenues not otherwise reimbursed that are attributable to COVID-19. The Department previously distributed $50 billion from this fund based on providers’ proportions of total net patient revenue.

Our Take

In a statement, AHA said, “America’s hospitals and health systems are pleased by the announcement from HHS regarding the distribution of additional funds from the CARES Act emergency relief fund. As urged by the AHA, much needed funding will go to hospitals with high numbers of COVID-19 admissions (hot spots) to help offset the significant costs incurred as they are treating COVID-19 patients. Additional funding will also be provided to these hospitals based on their coverage of Medicaid and uninsured patients. AHA also greatly appreciates the Administration’s willingness to listen to our suggestion to target funding for rural hospitals to help ensure they are able to remain open and serve their communities.

“The AHA continues to urge remaining emergency funds be sent as soon as possible to hospitals and health systems on the front lines. This critical funding is a life-line to hospitals and health systems and will help make certain that we can continue to deliver care to our patients and communities during the COVID-19 pandemic.”

Further Questions

If you have questions, please contact AHA at 800-424-4301.