U.S. Health & Human Services (HHS) announced on Friday that it is distributing another $12 billion to U.S. hospitals, but as of Sunday the initial explanation of how HHS was parceling out the money was removed from its website.
The department's original announcement indicated it was sending money through a “High-Impact Allocation” formula to areas most affected by COVID-19. In addition, HHS had announced distribution of another $10 billion to rural providers, including rural acute care general hospitals and critical access hospitals, rural health clinics, and community health centers located in rural areas.
HHS based its distribution on an April 10 cutoff date for counting COVID-19 patients. That date disadvantaged Massachusetts, which saw its surge in patients in the weeks following that date. The formula also does not recognize smaller hospitals facing the same major financial challenges of the COVID-19 emergency, with all hospitals ceasing elective surgeries and experiencing reduced outpatient visits.
Friday’s funding announcement was the latest distribution from the $100 billion contained in the CARES Act for healthcare providers. Previously, $50 billion had been distributed with only about 43% of that amount going to frontline hospitals (of which approximately $550 million came to Massachusetts). MHA is engaged with the state’s supportive Congressional delegation and has advocated for the need for additional financial relief for hospitals like those in Massachusetts that are facing a more extreme, direct, and prolonged effect of the COVID-19 pandemic.
As Congress continues discussion of the next financial relief bill – a so-called 4.0 relief package – MHA has been in contact with the state’s Congressional delegation urging help for sorely pressed hospitals.
In a letter to each member of the Massachusetts Congressional delegation, MHA President & CEO Steve Walsh wrote, “Our most recent, conservative estimates show that due to the curtailment of elective surgeries and other non-COVID-19 care, Massachusetts acute care hospital revenue losses are approximately $1.1 billion per month. Hospital-affiliated physician organization revenue losses are estimated to be more than $280 million per month.” In addition, hospitals are spending enormous sums to reconfigure spaces for ICU care, buy marked-up supplies and PPE, provide child care and hotel rooms for workers, support skilled nursing functions – and much, much more. “While the relief packages from Capitol Hill are greatly appreciated and necessary, the wide dispersal of funding to all Medicare providers has not recognized the central role hospitals play – especially those in COVID-19 ‘hot spots’ such as Massachusetts,” Walsh wrote.
Walsh called on Congress to ensure that future funding distributions from the Provider Relief Fund or any other source are “proportionally directed to hospitals where COVID-19 is having the most negative effect.” MHA then laid out a series of specific funding ideas to be included in the 4.0 bill.
The American Hospital Association (AHA) weighed in with its own letter. AHA wrote: “[H]ospitals and health systems that are supporting the nurses and physicians to care for patients, building new sites of care to minimize the spread of the virus, and purchasing the ventilators, drugs, and supplies to care for the critically ill, received less than a fair share given their role. We would appreciate that HHS better target funding for hospitals and health systems, which serve as the nation’s primary source of COVID-19 testing and treatment.” The AHA noted that hospitals stopped non-emergency procedures at the government’s request and lost 40-70% of their revenue in doing so.