CMS to release another $30B in hospital aid: 5 things to know

CMS is preparing to release the next slice of funding designated for hospitals in the Coronavirus Aid, Relief, and Economic Security Act, according to The Washington Post.

Five things to know:

1. The CARES Act includes a $100 billion emergency fund to reimburse healthcare providers for expenses or lost revenue related to the COVID-19 pandemic.

2. The first $30 billion was distributed April 10. The first round of grants were distributed based on historical share of Medicare revenue.

3. CMS Administrator Seema Verma said April 15 that the next slice of funding "will address all providers, as well as address hot spots," according to The Washington Post. 

4. The second batch of funding is expected to be roughly $30 billion and will be distributed in two pieces, a healthcare industry leader briefed by White House officials told The Washington Post.

5. About $20 billion will be distributed based on a hospital's proportion of total revenue, including money from private insurers and Medicaid. The remaining $10 billion in the second round of funding will be distributed to hospitals with large numbers of COVID-19 patients, according to The Washington Post.

More articles on healthcare finance:
CMS pitches 3 payment rules for 2021: 5 things to know
State-by-state breakdown of 354 rural hospitals at high risk of closing
CMS sends $51B in advance payments to hospitals

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