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HHS Readies Another $10B for Hospitals in COVID-19 Hotspots

Analysis  |  By John Commins  
   July 17, 2020

Payments from the $10 billion distribution will go to more than 1,000 hospitals across the nation beginning Monday.

The Department of Health and Human Service on Monday will begin distributing another $10 billion in emergency funds for more than 1,000 hospitals in the nation's COVID-19 hotspots.

"The top priority for HHS's administration of the Provider Relief Fund has been getting support as quickly as possible to providers who have been hit hard by COVID-19," HHS Secretary Alex Azar said.

"Because we've carefully targeted support, we can make payments to areas most in need as the pandemic evolves, like we are doing with this round of funds," he said.

In early June, HHS told hospitals it would distribute a second round of funding for hospitals in COVID-19 hotspots and asked them to submit data on their COVID-19 positive-inpatient admissions from January 1 through June 10.

Those submissions determine eligibility and the share of the second round of the funding being announced today.

So far, the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Paycheck Protection Program and Health Care Enhancement Act have doled out more than $175 billion in relief funds to hospitals and other providers, especially those disproportionately affected by the pandemic.

In May, HHS announced the first round of high impact funding totaling $12 billion that was shared by 395 hospitals. So far, the two rounds of hotspot funding from the Provider Relief Fund program is more than $20 billion, almost 12% of the $175 billion program.    

The latest funding formula identified hospitals with more than 161 COVID-19 admissions between January 1 and June 10, or one admission per day, or that experienced a disproportionate intensity of COVID admissions (exceeding the average ratio of COVID admissions/bed). Hospitals will be paid $50,000 per admission, HHS said.

The first round of funding distributed funds to hospitals with 100 or more COVID-19 admissions between January 1 and April 10 and paid $76,975 per admission.

The previous high impact payments were also taken into account when determining each hospital's payment in this second round distribution.

American Hospital Association President and CEO Rick Pollack thanked HHS for the latest funding measure, but said more help will be needed.

"Since this distribution of funding for 'hot spots' does not take into account the latest spike in cases and hospitalizations in some parts of the country, we look forward to working with the Administration to ensure that additional relief will be distributed to 'hot spots' and all hospitals," he said.  

The AHA has estimated that hospitals could lose more than $323 billion in 2020, owing to tanking patient volumes because of the pandemic.

HHS said it may distribute more relief funding as areas of the nation see a spike in COVID-19 cases.  

“Because we've carefully targeted support, we can make payments to areas most in need as the pandemic evolves, like we are doing with this round of funds.”

John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.


KEY TAKEAWAYS

The latest funding forumula identified hospitals with more than 161 COVID-19 admissions between January 1 and June 10.

Hospitals with one admission per day, or that experienced a disproportionate intensity of COVID admissions will also get $50,000 per admission.

The first round of funding distributed funds to hospitals with 100 or more COVID-19 admissions between January 1 and April 10 and paid $76,975 per admission.

AHA CEO Rick Pollack thanked HHS for the latest funding measure, but said more money will be needed.


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