Trump signs bill designating additional $75B for hospital COVID-19 response
President Donald Trump signed the legislation into law Friday after the U.S. House of Representatives approved the measure without changes Thursday.
Hospitals are set to get $75 billion in the next round of emergency funding for the country's COVID-19 response as the Senate approved legislation Tuesday and the White House expressed support. The House of Representatives could return for a vote as soon as this week.
The amount is three-quarters of what various hospital groups had requested as their facilities face a major financial hit from the pandemic. Most have stopped lucrative elective procedures at the same time expenses rise due to increased need for staff and specialty supplies to treat the virus. Still, hospitals commended the legislation, saying it would "help ensure that critical care can continue to be provided by frontline providers throughout the country."
The Paycheck Protection Program and Health Care Enhancement Act allocates another $25 billion for expanding and administering COVID-19 testing for active infection and prior exposure as well as conducting surveillance and contact tracing.
Major hospital operators HCA Healthcare, Community Health Systems and Tenet Healthcare have all pulled their 2020 guidance as they adjust for the influx of COVID-19 patients across the country.
In its first quarter report Tuesday, HCA attributed a steep decrease in volumes and 45% drop in profit to the pandemic. "We do believe the impact to the company will be most pronounced during this current response phase, as volume continues to decline throughout April," HCA CFO Bill Rutherford told investors Tuesday.
Hospitals received $100 billion in the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act passed last month and the first tranche of that funding has already been deposited in facilities' bank accounts, based on historic Medicare payments.
CMS has made other attempts to help hospitals financially. The CARES Act includes a 20% bump to payments for treating COVID-19 and the agency has sent billions in expedited Medicare payments as hospitals request them.
Hospitals warned Tuesday that HHS should distribute funds quickly. "While we appreciate Congress taking swift action — more still needs to be done to defeat COVID," the Federation of American Hospitals said in a statement. "It is important that HHS distributes the funding in a timely, well-targeted fashion. And it remains mission-critical to reform the Medicare Accelerated Payment Program so that it does not impede hospitals' ability to meet patient needs."
Author: Shannon Muchmore
Published: April 21, 2020 https://www.healthcaredive.com/news/trump-signs-bill-designating-additional-75b-for-hospital-covid-19-response/576466/