Billions More for Hospitals: Feds Rush Money to Hard-Hit Facilities

Billions More for Hospitals: Feds Rush Money to Hard-Hit Facilities

July 22, 2020

Sometimes, things take a turn for the worse. In those times when you receive an unexpected blow—bad news that hits you where it hurts—it’s nice to have a small sign that all is not lost and that at least some help is on the way. What is happening to the United States right now is not only head-scratching, it’s becoming downright irritating, as COVID continues its dangerous rampage. For our hospitals and healthcare workers, the stresses are unimaginable. So, they, in particular, could use some good news. That news came in the form of a government decision published in just the last few days.

Genesis of the Decision

This past Friday, the U.S. Department of Health and Human Services (HHS) announced that it would send an additional $10 billion in relief funds to hospitals that have been deemed to be located in recent COVID outbreak areas across the country. According to numerous reports over the last several days, the coronavirus case count has surged—particularly in the South and Southwest—and has created another crisis for many of the health facilities in those regions. The federal relief funds were scheduled to be sent out as early as this week.

Basis of the Distribution

The determination on how much to give and to which facilities was based initially on a request by HHS for additional data from hospitals. The agency developed a formula that evaluated COVID admissions through June 10, and that was then used to determine which hospitals would be eligible to receive a portion of the relief funds. According to HHS figures, it appears that Illinois hospitals will receive the most money, totaling nearly $740 million.

While the American Hospital Association (AHA) was gratified at this development and expressed its thanks to HHS for the additional funding, it stressed that more money would be needed as the formula did not fully take into account all areas that are currently experiencing a surge in cases.

Synopsis of the Declaration

According to HealthcareDive, here are the things to remember concerning this story:

  • The U.S. has failed to contain the novel coronavirus, with new surges in cases causing hospitals to put off elective procedures and warning of new hospital bed shortages, particularly in the South and West including Texas, Florida and Arizona.
  • Cases in the U.S. topped 3.6 million as of Friday, more than any other country in the world, according to Johns Hopkins Coronavirus Resource Center. The U.S. has also reported more deaths than any other country as more than 138,000 have died.
  • HHS said its second round of hot spot funding will reimburse providers who cared for a disproportionately high number of patients with the disease through June 10.
  • This latest funding round is intended to aid more than 1,000 hospitals in nearly every state across the country.
  • Though appreciative, AHA warned it is not enough. “We look forward to working with the Administration to ensure that additional relief will be distributed to ‘hot spots’ and all hospitals,” the group said in a statement Friday.
  • Overall, hot spot funding committed to hospitals now totals more than $20 billion, representing 12% of the overall $175 billion of the total provider relief funds made available through two pieces of legislation, including the Coronavirus Aid, Relief, and Economic Security Act. Of that $175 billion, $125 billion has been allocated but just $61 billion has been delivered and attested to by the providers that have received it.