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HHS Announces $25 Billion to Medicaid & Safety Net Hospitals & Providers to Combat Coronavirus

June 9, 2020
Press Release
Announcement Comes After Pallone Voiced Concern Last Week About Prolonged Delays to Medicaid-Dependent Providers

Washington, DC – One week after Congressman Frank Pallone, Jr. (NJ-06) and other Congressional Committee leaders expressed concern about funding delays to Medicaid-dependent providers, the Department of Health and Human Services (HHS) announced that it will allocate $25 billion in the next round of coronavirus relief funding to safety net hospitals and providers who treat Medicaid patients. HHS will allocate $15 billion to Medicaid providers who did not receive funding during the first and second general distribution allocations and then $10 billion for safety net hospitals who serve a disproportionate number of Medicaid patients or provide large amounts of uncompensated care. Funding allocations for specific providers will be made available in the coming weeks.

Health providers who serve Medicaid patients are on the front lines of the coronavirus pandemic, and we have a duty to make sure they have the resources they need to keep all Americans healthy,” Pallone said. This funding is a step in the right direction, but more needs to be done to address the ongoing needs of large numbers of Medicaid-dependent providers that will not benefit from todays announcement. I will continue to fight to ensure providers are treated fairly and receive these much-needed relief funds.”

Last week, Pallone and three other Committee leaders sent the letter expressing concern over prolonged delays in disbursing provider relief funds made available in the Public Health and Social Services Emergency Fund (PHSSEF) for Medicaid-dependent providers. In an effort to provide critical financial relief to health care providers struggling to respond to the COVID-19 pandemic, Congress acted swiftly to appropriate $175 billion in provider relief.

HHS also announced today that it will begin collecting data from hospitals that are in coronavirus hotspots to determine a second round of funding to hospitals.  This will be based on COVID-19 positive inpatient admissions from January 1 through June 10. Hospitals must submit their information by June 15 at 9 pm EDT.

In May, Pallone announced that New Jersey hospitals received $1.7 billion in funding received by New Jersey health care providers from the Provider Relief Fund established in the bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act. Providers in New Jerseys Sixth Congressional District received over $177 million.

The $1.7 billion allotment was the third round of funding issued to hospitals through the CARES Act. The first two rounds were distributed on a formula basis that was linked to net patient revenues. The third round, which amounted to $12 billion nationally, was specifically linked to the number of COVID-19 hospital admissions. Hospitals that treated the highest number of patients through April 10 received funding. New Jersey hospitals and health care providers have received over $2.7 billion in total from funding allocated in the CARES Act.