HHS Gives $4.9B to Skilled Nursing Facilities Impacted by COVID-19

Skilled nursing facilities are getting billions of dollars in grants from the federal government to offset growing expenses and lost revenue attributable to COVID-19, HHS recently announced.

The federal department announced on May 22 the distribution of $4.9 billion in additional coronavirus relief funds to skilled nursing facilities, which have been called ground zero for the COVID-19 pandemic because of how rapidly the novel coronavirus has spread in nursing homes.

HHS reported in the announcement that the pandemic has put the viability of skilled nursing facilities at risk. Since the beginning of 2020, the organizations have experienced up to a six percent decline in their patient population as current and potential residents opt for other care settings or succumb to the coronavirus.

“This funding secured by President Trump will help nursing homes keep the seniors they care for safe during the COVID-19 pandemic,” HHS Secretary Alex Azar said in the announcement. “The Trump Administration is providing every resource we can, from funding and direct PPE shipments to regulatory flexibility and infection control consultations, to protect seniors in nursing homes and those who care for them.”

Skilled nursing facilities with six or more certified beds will receive a fixed distribution of $50,000, plus another $2,500 per bed, HHS reported. However, the distribution will only be a short-term fix for long-term care during the pandemic, skilled nursing facilities said.

“Given the gravity of the situation we are facing with this deadly virus and its impact on our vulnerable residents, long term care facilities require additional support and funding from state and federal governments to reduce its spread,” the American Health Care Association and National Center for Assisted Living (AHCA/NCAL) stated following the announcement. Together, the associations represent more than 14,000 nursing homes and long-term care facilities across the country that provide care to approximately 5 million people each year.

Assisted living communities have yet to receive direct aid despite serving one of the most vulnerable patient populations, AHCA/NCAL explained.

“While building on support received from HHS, we are asking for additional consideration for all long-term care facilities, whether it be in regard to additional testing, personal protective equipment, or funding,” they said.

Earlier this month, AHCA/NCAL requested $10 billion in additional funding to support skilled nursing facilities during the pandemic. The funding would support skilled nursing facilities for three to four months as the organizations deal with staffing, COVID-19 testing, and personal protective equipment, the associations told top health officials.

Congressmembers have also urged the Trump Administration to better support skilled nursing facilities during the pandemic. A group of 87 representatives asked HHS and CMS that a portion of the emergency funding appropriated by Congress as part of the Paycheck Protection Program and Health Care Enhancement Act be allocated to states “specifically for the development, purchase, administration, or provision of COVID-19 diagnostic tests for long-term care facilities.”

Without additional support, industry experts fear skilled nursing facilities and other post-acute care providers will not be able to weather the COVID-19 storm.

“Post-acute providers will face further challenges with occupancy, already on a decline as the industry continues to move care from traditional four-walled facilities to home-based models, as reports of COVID-19 breakouts at senior care facilities are creating concern from new residents and their families about the safety of these facilities,” explained Venson Wallin and Patrick Pilch of BDO.