June 16, 2024


Make Every Business

AHA is asking Congress to release remaining provider relief funds

Photo: Xavierarnau/Getty Visuals

The American Clinic Association desires Congressional action to distribute the remaining provider relief money and to take other measures to enable ease the money pressure prompted by COVID-19. 

No service provider relief funds from American Rescue Prepare have been unveiled to tackle the Delta and Omicron variants, regardless of steep increases in hospitalizations and deaths, AHA Executive Vice President Stacey Hughes said in a January 20 letter to Residence and Senate leaders. 

“We ask that Congress urge the Administration to immediately distribute and account for the remaining resources in the PRF, including extending the deadline for expending resources and enabling the resources to be utilized for bills associated with extra security steps and training to permit every single of our nation’s hospitals to overcome its distinctive challenges,” Hughes claimed. “On top of that, we check with that Congress supply more PRF bucks in the volume of $25 billion to healthcare providers who carry on to have dropped revenues and increased expenditures thanks to the great economical strain that the delta and omicron variant are triggering.”

The City Institute believed in Oct 2021 that $26.8 billion remained in supplier relief funding.

The AHA and healthcare facility leaders are holding a push get in touch with at 9 a.m. Tuesday, January 25, to focus on the surge in caseloads and hospitalizations spurred by the variants, and also workforce challenges the group mentioned has arrived at the stage of a nationwide crisis.
Scheduled to be on the connect with are AHA President and CEO Rick Pollack Robyn Begley, senior vice president and main nursing officer of the AHA Wright Lassiter, president and CEO of the Henry Ford Health and fitness Process, Detroit, who is the 2022 chair of the AHA Board of Trustees Bruce Flanz, president and CEO, MediSys Overall health Community, Queens, New York and Ruby Kirby, CEO, West Tennessee Healthcare Bolivar and Camden Hospitals.

WHY THIS Matters

Hughes explained, “The pandemic has put significant economical tension on hospitals, which include, but not limited to: bigger costs for labor, prescription drugs and provides the astronomical costs of planning for a surge of COVID-19 patients months of crucial healthcare facility profits remaining erased because of to the blend of a pressured shutdown and slowdown of standard operations for non-emergent treatment and the substantial price of managing COVID-19 scenarios, which have a tendency to be amazingly resource intensive.

“The absence of PRF pounds to deal with troubles wrought by the delta and omicron surges has still left many hospitals going through too much to handle financial and operational difficulties. Compounding this concern has been uncertainty and confusion all around the federal policies for formerly allotted PRF funding that have hindered many suppliers from employing the resources inside of the allotted timeframes.”

For the duration of the past two several years, hospitals and health systems have relied on service provider aid fund dollars and the momentary elimination of Medicare sequester cuts and other provisions that the AHA would like to see continued. 

“In addition to people continuing demands, we now require extra assist to bolster our stressed and strained workforce,” Hughes stated in the letter to Senate The greater part Leader Chuck Schumer, Senate Minority Chief Mitch McConnell, Household Speaker Nancy Pelosi and Household Minority Chief Kevin McCarthy.


The AHA would like Medicare sequester reduction to be extended right up until the finish of the COVID-19 general public wellness emergency or Dec. 31, 2022, whichever is later on. In December, Congress postponed the imminent 2% Medicare cuts to hospitals and medical professionals until April 2022, and then decreased the lower to 1% for an extra a few months. 

The AHA needs Congress to suspend Accelerated and Progress repayments for six months and allow for for recoupment just after the repayment suspension at 25% of Medicare statements payments for the subsequent 12 months. In March 2020, each the Facilities for Medicare and Medicaid Providers and Congress made adjustments to the current Accelerated and Advance Payments Packages to deliver additional added benefits and flexibilities thanks to the COVID-19 pandemic. Subsequently, Congress amended the repayment terms for providers and suppliers.

“These payments have served as a crucial lifeline to hospitals and wellness programs, furnishing very important funding to assist the entrance-line heroes treating sufferers, establish new web sites of care to minimize the distribute of the virus, and purchase the ventilators, drugs and materials to treatment for the critically sick,” Hughes stated. “However, the need to repay these money sites hospitals and wellness techniques again in economic jeopardy whilst they get the job done to get well from this unprecedented pandemic.” 

The AHA also would like Congress to be certain that hospitals collaborating in the 340B plan who may well have experienced changes to their disproportionate share healthcare facility adjustment percentage in fiscal several years 2020 or 2021 because of to the COVID-19 pandemic, are capable to keep their 340B eligibility. The COVID-19 pandemic has altered hospitals’ payer mix, which for some hospitals quickly reduced their DSH proportion, the AHA reported. This has threatened the capability of some hospitals to maintain their eligibility for the 340B Drug Pricing Program.

THE More substantial Trend

At the outset of the pandemic, Congress set up a Provider Aid Fund to help health care providers mitigate their fiscal losses.

Service provider reduction resources of $178 billion have been allocated to all suppliers and an supplemental $8.5 billion has been targeted for rural providers. The funds have been disbursed as a result of various tranches and specific payments with demanding guardrails as to how and in what timeframe they could be made use of, Hughes mentioned.

In May well 2021, the AHA urged the Office of Overall health and Human Services to distribute remaining service provider aid funds.

As of Jan. 13, 2022, the normal selection of each day COVID-19 hospital inpatients had greater 35% as opposed to the prior 7 days, the AHA reported. The ordinary number of day-to-day adult intense treatment device COVID-19 sufferers amplified 21%.

To date, there have been much more than 65 million situations of COVID-19 in the U.S. and extra than 850,000 deaths, the AHA said.

Final week, Dr. Anthony Fauci, main professional medical advisor to the president, said that Omicron is likely to peak in most states by mid-February.

Twitter: @SusanJMorse
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