Hospital Groups Urge HHS to Renew PHE, Regulatory Waivers

The waivers have given facilities flexibility and allowed for several crucial payment policies during the COVID-19 pandemic, hospitals argue.

The American Hospital Association (AHA) and Federation of American Hospitals (FAH) have asked HHS to extend the public health emergency (PHE) and make several regulatory waivers into permanent Medicare policy.

Both hospital groups stressed the importance of the waivers for providing care to patients during the COVID-19 pandemic, as well as allowing providers the necessary flexibility during a difficult climate rife with challenges such as the labor shortage.

In the letter to HHS secretary Xavier Becerra, FAH urged for the PHE to be renewed another 90 days when it expires in October, with another 90 day-day extension in the works if necessary. AHA, meanwhile, asked for the PHE to be continued without specifying a renewal length in their penned response.

Pointing to the waivers specifically, AHA outlined several benefits for patients and providers, including hospital-bed flexibilities and relief from administrative burdens.

"Additionally, the PHE declaration has allowed for several critical coverage and hospital payment policies, including a 20% DRG add-on payment for COVID-19 patients, new technology add-on payments for new COVID-19 therapeutics, an enhanced Federal Medical Assistance Percentage (FMAP) rate of 6.2% for states," AHA wrote. "Ending the PHE prematurely would place our hospitals in an extremely challenging position and would directly affect our ability to care for our patients and communities."

AHA cited responses from hospitals and health systems to their survey, which showed that 93% of respondents said their hospitals would be impacted if the waivers were rolled back, with 60% indicating it would be significant. Another 89% said they still depend on the flexibilities provided by the waivers to deliver needed care.

FAH argued that the waivers have transformed the healthcare system by encouraging new technologies to modernize delivery of care and accelerating adoption of alternative care models.

In the letter, FAH also listed key waivers and policies that it wants made permanent, spanning remote services, clinical services, lab services, discharge planning, behavioral health, physician self-referral, workforce, and increased capacity.

"Indeed, the PHE has already served as a bridge to CMS' efforts, which we strongly endorse, to transform certain temporary waivers into permanent Medicare policy, some of which may require Congressional action to avoid any disruptions," FAH stated.