The Trump administration launched $1.four billion to nearly 80 kids’s hospitals which have been impacted by the COVID-19 pandemic.
The cash comes out of a $175 billion fund Congress handed a couple of months in the past to assist suppliers which have been slammed by a monetary disaster attributable to the COVID-19 pandemic.
“Youngsters’s hospitals have seen reducing affected person visits and elevated prices,” the Division of Well being and Human Providers (HHS) stated in a press release Friday. “This distribution will assist to make sure kids’s hospitals obtain reduction funding proportional to different hospitals throughout the nation and suppliers caring for kids are capable of proceed working safely in a few of our most weak communities.”
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To get the funding, a free-standing kids’s hospital should be both exempt from the Facilities for Medicare & Medicaid Providers’ inpatient potential cost system or be outlined as a kids’s hospital graduate medical schooling facility by the Well being Sources and Providers Administration.
“Eligible hospitals will obtain 2.5% of their web income from affected person care,” HHS officers stated. “Qualifying free-standing kids’s hospitals will start receiving funds subsequent week.”
That is the newest focused distribution of the $175 billion supplier reduction fund handed by the CARES Act. HHS initially distributed cash to suppliers primarily based on their Medicare funds, however suppliers have complained that does not assist people who depend on different income sources.
HHS already gave out almost $15 billion to security hospitals and $11 billion to rural healthcare suppliers. The company can be allocating funding to hospitals which have seen a excessive variety of COVID-19 instances.
The American Hospital Affiliation (AHA) praised the brand new focused funding.
“We proceed to induce the Administration to distribute further reduction to all hospitals and well being methods, in addition to these in so-called ‘sizzling spots,'” the AHA stated in a press release.
The pandemic has hit hospitals laborious as states canceled elective procedures again in March to protect capability and provides to fight COVID-19. Whereas affected person volumes have slowly rebounded in some hospital methods, hospitals are nonetheless making an attempt to recuperate.
Main hospital methods comparable to Tenet Healthcare, HCA Healthcare and Common Well being Providers reported income within the second quarter regardless of the foremost drops in affected person volumes in March and April. A pivotal motive was funding from a $175 billion fund included within the CARES Act handed by Congress a couple of months in the past.