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Study IDs $412B in Federal Pandemic Funding for Healthcare

Analysis  |  By John Commins  
   August 27, 2020

The $412 billion includes $312 billion through Congress, $100 billion through the Trump administration, and at least $331 million through the Federal Reserve.

The federal government has authorized, spent, or committed $412 billion in coronavirus pandemic emergency funding for the healthcare sector, with more than 70% going directly to hospitals and other healthcare providers, a new analysis shows.

The Committee for a Responsible Federal Budget study said the $412 billion includes $312 billion through Congress, $100 billion through the Trump administration, and at least $331 million through Federal Reserve actions.

"A large portion of the money allocated thus far has gone to the health industry," the report said. "So far, roughly $291 billion (71%) of financial support to the health industry has been disbursed or committed."

CRFB said the emergency spending should result in a net deficit of $312 billion after loans and advanced payments are repaid.   

Through the Trump administration, the provider relief includes $100 billion of advanced payments to Medicare providers, which will have to be repaid with interest.

Additionally, loan programs account for $58 billion of funds authorized and disbursed to the healthcare sector.

The Paycheck Protection Program (PPP) has paid $57.9 billion of forgivable loans to small businesses in the health industry.

The Federal Reserve has purchased at least $319 million of large health care company bonds through its Corporate Credit Facility. CRFB said the figure is likely higher because they could only track bond purchases greater than $4 million.

CRFB estimates that the healthcare sector has received as much as $20 billion or more in Economic Injury Disaster Loans—assuming proportionality to the PPP.

Other authorized funds include $32 billion to support COVID-19 preparedness, $9 billion in health-related tax breaks, and several billion of additional spending.

Congress has also committed $11.2 billion for vaccine research, development, and manufacturing, including $2.5 billion to Moderna, $2.1 billion to GlaxoSmithKline, $2 billion to Pfizer, $1.6 billion to Novavax, $1.5 billion to Johnson & Johnson, $1.2 billion to Astrazeneca, and $450 million to Regeneron Therapeutic. 

“So far, roughly $291 billion (71%) of financial support to the health industry has been disbursed or committed."”

John Commins is the news editor for HealthLeaders.


KEY TAKEAWAYS

The provider relief includes $100 billion of advanced payments to Medicare providers, which will have to be repaid with interest.

Additionally, loan programs account for $58 billion of funds authorized and disbursed to the healthcare sector.

The Paycheck Protection Program has paid $57.9 billion of forgivable loans to small businesses in the health industry.

The Federal Reserve has purchased at least $319 million of large health care company bonds through its Corporate Credit Facility. 

The healthcare sector has received as much as $20 billion or more in Economic Injury Disaster Loans—assuming proportionality to the PPP.


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