Special Bulletin: AHA Urges HHS to Distribute Substantial Additional Emergency Funds in an Expedited Manner

The AHA today urged the Department of Health and Human Services to release “substantial additional emergency funds to all hospitals in an expedited manner” as part of the second wave of funding from the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

“The initial round of funding began to provide hospitals and health systems with some much-needed relief, but simply was not of the magnitude necessary,” AHA wrote today to HHS Secretary Alex Azar. “In addition to this second wave of funding to all hospitals, targeted relief is necessary for hospitals in hot spots, hospitals with a high percentage of payments under Medicare Advantage, hospitals caring for high numbers of Medicaid patients, and rural hospitals.”

The CARES Act increased funding for the Public Health and Social Services Emergency Fund by $100 billion in order to reimburse eligible health care providers for health care-related expenses or lost revenues that are attributable to COVID-19. HHS released $30 billion last week, targeting funds based on providers’ amounts of Medicare fee-for-service payments. However, this money was disbursed to all providers who bill Medicare, with hospitals and health systems receiving only a portion.

“Thus, we ask you to immediately distribute substantial additional funds directly to all hospitals, including rural and urban short-term acute-care, long-term care and critical access hospitals, as well as inpatient rehabilitation and inpatient psychiatric facilities,” AHA said. Funds should be distributed in an equitable manner, such as by bed size, total net patient revenue, or adjusted admissions.

For more details, see AHA’s letter to HHS Secretary Azar.