Bipartisan COVID-19 Relief Bill Would Add to Provider Relief Fund

December 10, 2020 - A group of bipartisan policymakers has released details on a $908 billion COVID-19 relief bill that would provide more financial support for healthcare providers.

According to a summary framework acquired by the American Hospital Association (AHA), the Bipartisan Emergency COVID Relief Act of 2020 would add $35 billion to the Provider Relief Fund, including $7 billion specifically for rural providers and $1 billion for tribes, tribal organizations, urban Indian health organizations, and health service providers to tribes.

If passed by Congress, the bill would also change Provider Relief Fund reporting requirements for providers by requiring HHS to revert back to reporting requirement guidance it gave in June, which allowed providers to use any “reasonable” method for determining revenue lost from the pandemic.

HHS altered the reporting requirements after the release of the June guidance, drawing criticism from provider groups that felt the new requirements were too strict and would force some providers to return Provider Relief Fund distributions.

Additionally, the bill would allow health systems to move targeted Provider Relief Fund distributions within their system.

Beyond support for healthcare providers, the bill would also allocate $6 billion to the CDC and state and local agencies for vaccine development and distribution, $7 billion for testing and contact tracing efforts, and $300 billion to the Small Business Administration to allow hard-hit small businesses to receive a second forgivable Paycheck Protection loan, among other things.

The bill was released shortly after President Trump unveiled his own COVID-19 relief package.

Trump’s Treasury Secretary Steven T. Mnuchin proposed to lawmakers a $916 billion bill that “includes money for state and local governments and robust liability protection for businesses, schools, and universities.”

The White House-backed bill would provide a one-time direct payment of $600 to Americans, according to reports.

However, details on where the rest of the $916 billion would go were scant, with Secretary Mnuchin saying in a statement earlier this week that the White House plans to fund the package using $140 billion in unused funds from the Paycheck Protection Program and $429 billion in Treasury funds.

“I look forward to achieving bipartisan agreement so we can provide this critical economic relief to American workers, families and businesses,” Mnuchin concluded.

But top Democratic policymakers House Speaker Nancy Pelosi (D-CA) and Senate Democratic Leader Chuck Schumer (D-NY) said bipartisan discussions in the House and Senate are “the best hope for a bipartisan solution” and President Trump’s proposal should not “allowed to obstruct the bipartisan Congressional talks that are underway.”

Congress has been deadlocked for months over another COVID-19 relief bill. The House and Senate have seemingly reignited bipartisan talks over another bill, but both chambers of Congress are scheduled to leave for a holiday break. The House is scheduled to leave at the end of the week.

Healthcare providers have been calling for additional financial support from the government for months.

The government had previously allocated $175 billion to the Provider Relief Fund through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The same law also reopened programs that advanced Medicare reimbursements to providers and allowed small provider organizations to apply for forgivable loans through the Paycheck Protection Program.

However, healthcare providers have told lawmakers that more is needed to keep hospitals and physician practices afloat during the unprecedented public health crisis.

Just recently, the American Medical Group Association (AMGA) called on Congressional leaders to replenish the Provider Relief Fund and restart Medicare’s Accelerated and Advance Payments (AAP) program once they reconvene in January.

“The increase in the number of cases, the need to cancel care, influenza season, and the coming winter months create a confluence of conditions that will strain our healthcare system’s ability to respond to this national crisis,” said Jerry Penso, MD, MBA, AMGA president and CEO.

AMGA reported earlier this year that physician practice revenue declined by 55 percent at the start of the pandemic as patient volumes dipped by an average of 60 percent. Later, its members said they would need at least another year to recover from the massive revenue losses.

Hospitals have also lost a significant portion of revenue from service lines impacted by the pandemic. The organizations have also voiced concerns over the increased cost of supplies, such as personal protective equipment.

Overall, AHA anticipates hospitals to lose $323 billion by the end of 2020 because of COVID-19, which it says puts the survival of hospitals “at serious risk” without additional support.