Rural hospitals won't be penalized for PPP loans, Verma says

CMS Administrator Seema Verma said the department will issue new guidance for rural hospitals that received Paycheck Protection Program loans after hospitals raised concerns that they would be penalized for receiving the funds. 

Some rural hospitals that received PPP loans became concerned that the funds may cause CMS to cut future Medicare payments after receiving inaccurate guidance from a Medicare administrative contractor. On Aug. 6, Ms. Verma addressed those concerns on Twitter. 

"CMS does not intend for Paycheck Protection Program funds to impact Medicare payments to rural hospitals," Ms. Verma said. "More guidance will be out soon that'll explain how hospitals should report those funds on their Medicare Cost Reports." 

The National Rural Health Association said it looks forward to reviewing the guidance from CMS. 


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