COVID-19 Estimates of CARES Act Hospital Relief Payments
From the CDC Website:
“The bipartisan CARES Act and the Paycheck Protection Program and Health Care Enhancement Act provided $175 billion in relief funds to hospitals and other healthcare providers on the front lines of the coronavirus response. The payments form the $12 billion COVID-19 High-Impact Allocation is being distributed by the Department of Health and Human Services through the Health Resources and Services Administration to 395 hospitals who provided inpatient care for 100 or more COVID-19 patients through April 10, 2020. $2 billion of these payments was distributed to these hospitals based on their Medicare disproportionate share and uncompensated care payments. These 395 hospitals accounted for 71 percent of COVID-19 inpatient admissions reported to HHS from nearly 6,000 hospitals around the country.”
Source: data.CDC.gov
For the latest COVID-19 news related to hospitals and healthcare providers, check out Toyon’s COVID-19 updates page.
Updated from original April 20, 2020 news post.
Below is a summary of additional hospital funding sources available to the healthcare community as result of the COVID-19 pandemic.
Direct and Indirect Funding That Impacts Hospitals
Description |
Estimated Amount |
Authority / Source |
Status |
CARES Act (H.R. 748) Provider Relief Fund Reimbursement to healthcare providers for expenses or lost revenue due to COVID-19 (Division B, Title VIII – DHHS,Public Health and Social Services Emergency Fund of $100B) |
$30B |
Initial Disbursement – Proportional Distribution to All Providers based on 2018 Net Patient Revenue |
Payments distributed via UHC beginning 4/10/2020, more info here.
|
$20B | Second Disbursement – Proportional Distribution to AllProviders based on 2018 Net Patient Revenue | Payments distributed beginning 4/24/2020 | |
$10B | Allocated to Hospitals Heavily Impacted by COVID-19 | DHHS is determining how to distribute these targeted funds |
|
$10B | Allocated to Rural Providers | ||
$400M | Allocated to Indian Health Services | ||
$20B | To Be Determined(likely to be based on reimbursement for uninsured) | ||
Reimbursement to providers for COVID-19 testing for uninsured patients | $1B |
Families First Coronavirus Response Act (H.R. 6201) Division F – Health ProvisionsSec. 6004 Coverage of COVID-19 Testing | DHHS is not yet accepting applications; timeframe unknown |
Funding for grantees ofHospital Preparedness Program | $250M | Assistant Secretary for Preparedness and Response | HPP coalitions will distribute funds;timeframe unknown |
Grants to hospital associations forpreparedness response | $50M | Assistant Secretary for Preparedness and Response | State hospital associations expected to distributefunds to hospitals in April |
2% Sequestration Adjustment temporary relief |
$2.8B |
CARES Act (H.R. 748)Title III – Supporting America’s Health Care System Sec. 3709 Adjustment of Sequestration | Effective for all Medicare claims with dates of service between May 1 to Dec 31, 2020(See Toyon’s calculation estimator) |
20% increase in reimbursement for Medicare COVID-19 hospital inpatients | Unknown |
CARES Act (H.R. 748)Title III – Supporting America’s Health Care System Sec. 3710 Medicare Add-on for COVID-19 Patients | Effective for all claims coded with COVID-19 ICD-10 diagnosis code (U07.1) throughoutPublic Health Emergency (PHE) period |
6.2% FMAP increase for Federal matching of Medicaid program funding via CPEs and IGTs | Unknown |
Families First Coronavirus Response Act (H.R. 6201) Division F – Health ProvisionsSec. 6008 Temporary Increase of Medicaid FMAP | Effective 1/1/2020 through end of quarter in which PHE ends |
Telehealth Funding Program |
$200M |
CARES Act (H.R. 748)Title V, Sec. 15002(c) Federal Communications Commission | Guidance on eligible providers and application process can be found here. |
Source: California Association of Public Hospitals and Health Systems, U.S. Dept of Health & Human Services
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