HHS Distributes $22B to Hotspots and Rural Providers

On May 1, 2020, the U.S. Department of Health and Human Services (HHS) announced additional funding details for two previously announced distributions from the Provider Relief Fund: hospitals in areas heavily affected by the Coronavirus (COVID-19) pandemic, and rural hospitals and clinics.

HHS will distribute $10 billion to hospitals that have been particularly affected by the COVID-19 outbreak, or “hotspots” using a fixed per admission formula. HHS will also provide a previously unannounced additional $2 billion to these hospitals based on their Medicare and Medicaid disproportionate share and uncompensated care payments. $10 billion will also be distributed to rural general acute care hospitals, critical access hospitals (CAHs), rural health clinics (RHCs), and community health centers (CHCs) located in rural areas.

Stakeholders are still awaiting clarity on how HHS will reach and support providers that have not yet received any funds, particularly those that primarily serve the Medicaid population, and others that have received funds that are inadequate against need.

HHS released information on the allocation of these funds by state and targeted county and a full summary of the distribution of these funds can be found on the McDermottPlus Coronavirus Resource Center. And additional information on the Provider Relief Fund can be found on this McDermottPlus summary of the fund.



For more information visit the McDermottPlus Payment Innovation Resource Center or contact Sheila Madhani at 202-204-1459/smadhani@mcdermottplus.com, Mara McDermott at 202-204-1462/mmcdermott@mcdermottplus.com or Rachel Stauffer at 202-204-1460/rstauffer@mcdermottplus.com.