Hospitals get $75 billion in new emergency funding package
Paycheck Protection Program will help smaller hospitals meet payroll and cover operating costs through forgivable loans.
Hospitals get $75 billion from a $484 billion emergency spending package passed by the Senate on Tuesday.
The Paycheck Protection Program also includes $25 billion for more testing of active infection, prior exposure and contact tracing. The bulk of the funds, $310 billion, will go to small businesses.
The House could vote on the bill as soon as this week.
WHY THIS MATTERS
The amount is three-quarters of what hospitals requested. Hospitals are also still waiting for more of the $100 billion earmarked for them in the Coronavirus Aid, Relief and Economic Security Act. They have received $30 billion, but it has not been enough to make up for the revenue losses from having to cancel elective procedures and to meet the need for staff and personal protection equipment to care for patients with COVID-19.
Some hospitals, unable to meet payroll, have been forced to reduce expenses by furloughing staff and cutting physician salaries.
THE LARGER TREND
Hospitals recently received $30 billion from CARES Act funding.
Providers who access money through the CARES Act are also eligible for Small Business Administration funding through the CARES Act, as long as the funding doesn't cover duplicative expenses. If a provider receives funding from multiple sources, it must repay the funding it received from the Public Health and Social Services Emergency Fund, according to Helen Pfister, partner with Manatt Health, and Neil Faden, partner in Manatt, Phelps and Phillips, in its corporate and finance practice.
ON THE RECORD
Rick Pollack, president and CEO of the American Hospital Association, said the funds "are greatly appreciated by hospitals. The initial CARES Act funds are already being used by hospitals and health systems to increase capacity and provide care, and in some cases to keep access to care available by keeping the doors open. We also welcome the increased funding for the Paycheck Protection Program, which will help some smaller hospitals meet payroll and other operating costs through forgivable loans."
Dr. Bruce Siegel, president and CEO of America's Essential Hospitals, said, "Now, we must ensure this funding reaches these hospitals, which are on the front lines and caring for populations at greatest risk – racial and ethnic minorities, low-income patients, and other vulnerable people."
Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com
