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HHS Announces Distribution of Additional COVID High Impact Funds

July 24, 2020

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CONTACTS
Allyson Perleoni, Senior Legislative Analyst
Len Marquez, Senior Director, Government Relations

The Department of Health and Human Services (HHS) announced on July 14 plans for a second round of funding from the Provider Relief Fund targeted to hospitals with high numbers of COVID-19 admissions.  

HHS will distribute $10 billion in additional funds to further target hospitals in “high impact” areas, building upon the previous $12 billion tranche announced on April 24 [see Washington Highlights, April 24], which determined eligibility for funds based on COVID patient admissions up until April 10, and reimbursed hospitals with 100 or more admissions $76,975 per admission. The HHS announcement revises the criteria to include hospitals with more than 161 admissions through June 10, with hospitals receiving $50,000 in relief funds per admission. 

HHS also announced that it will extend the deadline to apply for funds in the Medicaid/Children’s Health Insurance Program distribution to Aug. 3.

The Provider Relief Fund was established in the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) and expanded in the Paycheck Protection Program and Health Care Enhancement Act (P.L. 116-139) [see Washington Highlights, March 27, April 24]. The $175 billion fund was established to support health care providers’ increased related expenses or lost revenue due to COVID-19 response efforts. Approximately $50 billion remains in the fund.

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