About $2.5 billion of the provider relief funding, authorized by the Coronavirus Aid, Relief and Economic Security Act, will be used to support increased testing, staffing and personal protective gear needs at the facilities. There will also be funding for long-term care facilities establishing isolation units.
But unlike prior distributions, the remaining $2.5 billion will be distributed based on nursing home clinical performance.
HHS said that nearly 40 percent of COVID-19 deaths are nursing-home related, so the performance-based distribution will reward better outcomes and hopefully lead to improved care.
“We anticipate that linking payment to performance will be an effective means of holding nursing homes accountable, stimulating innovation and encouraging them to reach beyond their own walls for infection control expertise and support,” said Thomas Engels, an administrator of the HHS Health Resources and Services Administration.
The initial $2.5 billion nursing home distribution is expected to occur in mid-August, followed by the performance-based distributions this fall.
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