AHA: Let Hospitals Use COVID-19 Relief Funds Through PHE

The American Hospital Association (AHA) is asking HHS to extend the deadline for when providers can use COVID-19 relief funds to the end of the public health emergency (PHE).

HHS has set a deadline of June 30, 2021, for providers who received distributions from the Provider Relief Fund (PRF), a $175 billion pool of grants and reimbursements allocated specifically for healthcare providers by lawmakers through the Coronavirus Aid, Relief, and Economic Security (CARES) Act and subsequent pandemic legislation.

Providers should have more time to use the funds for pandemic-related expenses and lost revenues, AHA recently told HHS Secretary Xavier Becerra in a May 5th letter.

“Hospitals and health systems continue to incur expenses related to these COVID-19 cases and hospitalizations, such as ensuring an adequate workforce, acquiring equipment and supplies such as personal protective equipment, pharmaceuticals and safety equipment, and maintaining testing and additional screening for every hospital patient,” wrote Richard J. Pollack, AHA’s president and CEO.

“They absolutely should be able to apply their PRF funds toward these costs, which they will undoubtedly continue to incur beyond June 30 and through the end of the PHE,” Pollack stated.

COVID-19 relief funds through the PRF have been a “lifeline for hospitals and health systems,” AHA explained.

The hospital group previously reported that hospitals likely lost at least $323.1 billion last year because of pandemic-related costs and lost revenues from drastic declines in patient volumes. This year, hospitals and health systems are on track to lose another $53 billion to $122 billion depending on the success of vaccine rollout and other COVID-19 response factors.

The PRF has allowed hospitals to ensure patient and staff safety during the ongoing pandemic, even enabling some organizations to stay open despite financial hardships, AHA stated.

The number of COVID-19 cases is significantly down as the nation focuses on vaccine distribution. But the country is still reporting an average of over 45,000 new cases of the virus each day, according to the latest data from the Centers for Disease Control and Prevention (CDC).

There is also a seven-day average of 4,640 new hospital admissions related to COVID-19, the data shows.

New variants of the virus, however, are troubling public health experts as countries like India face new, worse surges. Vaccination efforts in the US are also slowing as state leaders try to engage hard-to-reach communities and combat vaccine hesitancy.

Secretary Becerra recently extended the COVID-19 PHE declared by previous HHS head Alex Azar on January 31, 2020. The declaration verifies that a public health emergency exists and measures designed to streamline response efforts should remain in effect.

HHS has indicated in recent correspondences with state Governors that it will continue to extend the COVID-19 PHE through the end of 2021 to continue “the ability to streamline and increase the accessibility of healthcare” through telehealth, enhanced federal funding for Medicaid, and continuous Medicaid enrollment, among other healthcare priorities.