HHS to Distribute an Additional $10 Billion to Hospitals in High Impact COVID-19 Areas

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On July 17, 2020, HHS announced it will begin distributing $10 billion through the Health Resources and Services Administration (HRSA) to hospitals in “high impact” COVID-19 areas. HHS states that it will begin distributing this portion of the Public Health and Social Services Emergency Relief Fund (Provider Relief Fund) this week. The fund is part of COVID-19 relief provided through the bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Paycheck Protection Program and Health Care Enhancement Act.

The recipients of this additional round of funding were chosen based on COVID-19 positive inpatient admissions data for the period spanning January 1, 2020 through June 10, 2020. The funding was based on a formula for hospitals with over 161 COVID-19 admissions during this time period or that experienced a disproportionate intensity of COVID-19 admissions (exceeding the average ratio of COVID-19 admissions per bed.) HHS states that hospitals will receive $50,000 per eligible admission. This relief will be provided to more than 1,000 hospitals across the country.

HHS Secretary, Alex Azar, stated “[t]he 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.” He added that this funding is “carefully targeted” so that HHS can make payments to areas “most in need as the pandemic evolves.”

A current list of hospital recipients is available here.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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