HHS to dole out $35B in CARES Act funds: 6 things to know

HHS announced June 9 that it is making additional distributions from the provider relief fund created under the Coronavirus Aid, Relief and Economic Security Act. 

Six things to know: 

1. HHS is distributing $15 billion to providers that participate in state Medicaid and Children's Health Insurance Programs and have not received a payment from the provider relief fund. Roughly 1 million healthcare providers may be eligible for this funding, HHS said. 

2. Payments to Medicaid and CHIP providers will be based on annual patient revenue, which they'll report through an enhanced provider relief fund payment portal that HHS is launching June 10.  

3. HHS is distributing an additional $10 billion to safety-net hospitals. To qualify, hospitals must have average uncompensated care per bed of at least $25,000, profitability of 3 percent or less and a Medicare Disproportionate Payment Percentage of 20.2 percent or greater. 

4. The payments to safety-net hospitals will occur this week, and each hospital will receive between $5 million and $50 million, HHS said. 

5. HHS is asking hospitals to update information on their COVID-19 inpatient admissions for the period of Jan. 1 through June 10 to determine a second round of funding to hospitals in COVID-19 hotspots. HHS is sending $10 billion to these hospitals. 

6. The American Hospital Association said it is pleased with the additional distribution from the CARES Act emergency relief fund, but more relief aid is needed. 

"While we appreciate the emergency funds released by HHS to date, the AHA continues to urge the department to distribute substantial additional funds to hospitals and health systems in an expedited manner as the COVID-19 virus continues to spread, hospitalizations continue to occur, and many Americans continue to forgo care, including primary care and other specialty care visits," Rick Pollack, president and CEO of the AHA, said. 

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