COVID-19 Funding Resources

KHA Summary of Funding for Hospitals During COVID-19 Crisis

KHA Webinars on Funding Resources for Hospitals

Funding Resources for Hospitals 4-2-20

Compliance Issues Related to the Receipt of COVID-19 Funding 5-20-20

CARES Act Overview

       KHA Contacts: Audrey Dunkel and Tish Hollingsworth

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, Public Law 116-136, signed into law on March 27, included $100 billion in Public Health and Social Service Emergency Fund appropriations to be distributed by grants or other payment mechanisms to healthcare providers for expenses or lost revenues attributable to COVID-19 not reimbursable to by other sources.  Providers will be reimbursed through grants and other payment mechanisms.

 

Coronavirus Relief Fund

       KHA Contact: Audrey Dunkel

The CARES Act provides $150 billion in assistance for governments in states, territories and tribal areas through the Coronavirus Relief Fund. Eligibility is dependent on the location, level of government, and use of potential funds. The funds can be used to pay for three types of programs:

  1. Programs that are necessary expenditures incurred due to the public health emergency with respect to COVID-19;
  2. Programs that were not accounted for in the budget most recently approved as of the date of enactment (3-27-20) of this section for the State or government; and
  3. Programs that were incurred during the period that begins on 3-1-20 and ends on 12-3-20.

 

Federal Reserve Emergency Lending Program

       KHA Contact: Audrey Dunkel

 

Public Health and Social Services Emergency Fund (PHSSEF)

      KHA Contacts: Audrey Dunkel and Tish Hollingsworth

The CARES Act includes $100 billion in Public Health and Social Service Emergency Fund appropriations to be distributed by grants or other payment mechanisms to healthcare providers for expenses or lost revenues attributable to COVID-19 and not reimbursable by other sources.  Providers will be reimbursed through grants and other payment mechanisms.

   -   CARES Act Provider Relief Fund ($30 billion) - Funds disbursed on April 10 and April 17

      KHA Contact: Tish Hollingsworth
In order to expedite emergency funds to hospitals and health systems from the CARES Act, HHS disbursed $30 billion to all facilities and providers that received Medicare fee-for-service payments in 2019.  Health care providers received a disbursement on either April 10 or April 17 based on their share of the total 2019 Medicare fee-for-service (FFS) payments.  Providers are required to sign an attestation confirming receipt of payment and agreeing to the terms and conditions of the payment.  Additional information can be found in the AHA Bulletin 4-22-20.

 

   -   CARES Act Provider Relief Funds Round 2 ($20 billion) - Funds disbursed beginning April 24

      KHA Contact: Tish Hollingsworth

An additional tranche of $20 billion will be disbursed to a portion of providers on April 24 based on revenue data from their 2018 Medicare cost reports.  The payment made to each provider will take into account what they previously received under the first round of Provider Relief Funds, so that their total allocation under both waves ($50 billion total) is proportional to their share of 2018 total net patient revenue.  This methodology appears to account for the fact that providers with lower shares of Medicare FFS payments, such as hospitals with high Medicaid or Medicare Advantage populations, received proportionally less funds under the first distribution of $30 billion.  HHS states that on April 24th, a portion of providers will automatically be sent a payment based on the revenue data from their Medicare cost reports.  Providers without adequate cost report data will need to submit this information to a portal which HHS indicates will open this week.  As with the $30 billion distribution, providers receiving funds will have to sign an attestation confirming receipt and agreeing to the terms and conditions of payment. 

Payments will go out weekly, on a rolling basis, as information is validated.


   -   CARES Act Targeted Funding ($10 billion) - Delay in Application Deadline

      KHA Contact: Audrey Dunkel

On April 21, HHS announced that it would be distributing $10 billion to hospitals in areas that have been particularly impacted by the COVID-19 outbreak.  Hospitals have been asked to apply for the funds by submitting four pieces of data through the Teletracking website by 12:00 PM Pacific Time on Saturday, April 25, 2020.  Hospitals are being asked to provide: Tax Identification Number, National Provider Identifier, total number of Intensive Care Unit beds as of April 10, 2020, and total number of admissions with a positive diagnosis for COVID-19 from January 1, 2020 to April 10, 2020.  In addition, HHS has indicated that the distribution formula will use Medicare Disproportionate Share Hospital (DSH) adjustment to make adjustments for hospitals serving a significantly disproportionate number of low-income patients.

   -   CARES Act for Rural Providers ($10 billion)

      KHA Contact: Audrey Dunkel

HHS is allocating $10 billion to rural hospitals and rural health clinics as early as the week of April 27 on the basis of operating expenses, using a methodology that distributes payment proportionately to each facility and clinic.

 
   -   CARES Act for High Medicaid Providers

      KHA Contact: Audrey Dunkel

HHS states that certain providers will receive further, separate funding, including skilled-nursing facilities, dentists and providers that solely take Medicaid.

 

   -   CARES Act for Treatment of the Uninsured

      KHA Contact: Tish Hollingsworth

HHS announced that providers that have treated uninsured patients with COVID-19 on or after February 4, 2020, can request reimbursement at Medicare rates, subject to available funding.  Steps will involve: enrolling as a provider participant, checking patient eligibility and benefits, submitting patient information, submitting claims, and receiving payment via direct deposit.  HHS stated that providers can register for the program on April 27, 2020, and begin submitting claims in early May 2020.  Additional information is available on the HRSA website.

 

   -   CARES Act for Indian Health Service ($400 million)

Recognizing the strain experiences by the Indian Health Service, $400 million will be allocated for IHS facilities distributed on the basis of operating expenses for the facilities.

 

CARES Act Small Business Administration (SBA) 7(a) Loans/Payroll Protection Program (PPP)

      KHA Contact: Steve Poage 


Paycheck Protection Program and Health Care Enhancement Act (PPPHCEA)

      KHA Contact: Steve Poage and Tish Hollingsworth

On April 24, the PPPHCEA was signed into law, which adds another $484 billion in a COVID-19 “3.5” relief package.  This package includes an additional $75 billion in funding to hospitals and other health care providers to reimburse eligible health care providers for health care-related expenses or lost revenues not otherwise reimbursed that are directly attributable to COVID-19.  The package also includes additional funding for the Paycheck Protection Program as well as providing funding to support efforts to research, develop, validate, manufacture, purchase and expand capacity for COVID-19 tests.

 

   -  Health Care Provider Funding

      KHA Contact: Tish Hollingsworth


   -   Rural Health Clinic Funding

      KHA Contact:

On 5-20-20 HHS distributed $225 million nationally to RHCs at a rate of almost $50,000 per site to support COVID-19 testing efforts and expand access to testing in rural communities. There were 174 Kansas RHCs in Kansas received a total of around $8.6 million.

 

ASPR Grant (Assistant Secretary for Preparedness and Response)

      KHA Contact: Ron Marshall

  • KHA has been awarded a $784,542 ASPR Grant
  • Hospitals have received their award amounts and had the opportunity to accept those funds
  • Hospitals will be required to provide documentation and reports to secure funding
  • Payments will be made to hospitals by the first week of May

 

FEMA

      KHA Contact: Steve Poage


Medicare Accelerated/Advance Payment Program

      KHA Contact: Tish Hollingsworth

Payroll and Taxes

      KHA Contact: Steve Poage

 

Private Loan Financing: Kansas Bankers Association (KBA)

      KHA Contact: Steve Poage

 

SHIP (Small Hospital Improvement Program)

      KHA Contact: Jennifer Findley

  • More information coming soon

 

State of Kansas COVID-19 Grant

      KHA Contact: Tish Hollingsworth

On April 16, Governor Laura Kelly announced a special emergency grant funding program for Kansas hospitals.  This emergency funding was requested by KHA on behalf of the community hospitals and is being distributed to help offset the financial strains caused by the COVID-19 pandemic.  Hospitals are not required to complete an application, and there are no specific requirements tied to the utilization of the funds.  The grant funds are being distributed in the following manner: Critical Access Hospitals will receive $100,000; Rural PPS hospitals will receive $150,000; and Semi-Urban (as noted by KDHE's Map of Peer County Groups below) and Urban PPS hospitals will receive $250,000.  Payments will be distributed electronically on April 24.

 

KHA Sponsor COVID-19 Resources

 

Other Funding Options/Resources