| Covid-19 | Jul 14, 2020

HHS Announces Over $4 Billion in Additional Relief Payments to Healthcare Providers Impacted by the Coronavirus Pandemic

HHS announced the following new Provider Relief Fund distributions:- Additional ~$3 Billion for Safety Net Hospitals: On June 9, HHS announced a $10 billion distribution to safety net hospitals that met certain criteria (for more information, see Manatt’s newsletter). In today’s announcement, HHS indicated that it is expanding the criterion related to hospital profitability. To receive the June 9-announced payment, hospitals were required to (among other criteria) have demonstrated profitability of 3% or less on their most recent cost report. The new $3 billion distribution will now include hospitals that meet a profitability threshold of 3% or less over two or more of the last five cost reporting periods. HHS expects to distribute over $3 billion across 215 acute care facilities based on this criterion adjustment, bringing the total distribution to safety net hospitals to $12.8 billion across 959 facilities. – $1 Billion for Certain Rural Providers and Other Providers from Small Metropolitan Areas: In May, HHS announced $10 billion in funding for rural providers (including hospitals, health clinics, and health centers). HHS is expanding that payment formula to include certain special rural Medicare designation hospitals in urban areas, as well as others that provide care in smaller, non-rural communities (which may include some suburban hospitals). Payments will range from $100,000 to $4.5 million. – Allocation for Dentists: An application process is now open for dentists who may not have been eligible to receive funding through the Provider Relief Fund. Eligible dentists will receive 2% of their annual reported patient revenue and have until July 24 to apply for funding via the enhanced portal.