Lawmakers Call for Extension of Provider Relief Fund Benefits
With the June 30th deadline to spend unused Provider Relief Funds fast approaching, House Representatives are asking HHS to extend the benefits.
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By Jill McKeon
- A bipartisan group of 77 Congress members, led by Reps. Cindy Axne (IA-03) and Mariannette Miller-Meeks (IA-02), released a letter on May 11th urging HHS to reconsider its June 30th deadline for spending unused grants from the Provider Relief Fund.
Our nation’s health care providers have been on the frontlines of the fight against COVID-19 for over a year, and we can ill afford to sever a financial lifeline when providers are still treating patients with COVID-19 and facing higher prices for things like PPE,” said Rep. Axne in a press release.
The Provider Relief Fund (PRF), part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, allows for providers to apply for and receive funds to cover pandemic-related expenses and losses. Once providers have been approved and receive a payment, they must attest that its use follows the PRF terms and conditions. If awarded more than $10,000, providers must later submit a report to HHS to justify what the funds were used for, the HHS website states.
“While we thank HHS for the instrumental role it has played in distributing financial assistance to providers, we are concerned that existing program requirements limit the impact of relief measures enacted by Congress,” explained the letter.
In addition to concerns about the limited requirements for using PRF funds, the letter maintains that the deadline puts providers in a difficult situation when it comes to making alterations to patient care rooms or even building new structures to accommodate testing or vaccination sites. The representatives argue that hospitals are reluctant to start these projects now, in fear of funds being taken away before the projects are completed.
“While we share your commitment to ensuring PRF funds are not subject to abuse, these guidelines have significant consequences for providers that operate on thin margins and struggle to maintain cash flow,” the letter explained.
“Providing much-needed flexibility, such as allowing providers to use a partial lookback window to calculate lost revenues when non-emergent and non-essential procedures were shuttered and, in particular, extending the deadline to use the PRF funds to June 30, 2022 would give these providers the ability to put more of their PRF award toward fighting COVID-19.”
A day prior to the letter from lawmakers, the American Hospital Association (AHA) released a letter of its own also asking for a deadline extension on the use of PRF funds, along with a request to expedite distribution of the remaining PRF funds.
“We previously noted the ongoing financial burden our members are facing; add to this the uncertainty regarding when the pandemic will ease more considerably to allow for a full return to ‘business as usual,’ such as regular wellness visits and the resumption of scheduled surgeries,” the letter read.
“Our hospitals will continue to face challenges beyond June 30 in providing adequate staffing, supplies, personal protective equipment, testing and vaccinations,” the letter continued.
In a testimony before the Committee on Energy and Commerce on May 12, HHS Secretary Xavier Becerra spoke about President Joe Biden’s fiscal year (FY) 2022 HHS discretionary budget request. The FY 2022 discretionary request highlights a $25 billion increase for the discretionary HHS budget from FY 2021, at a total of $131.7 billion.
“This discretionary request underscores the Administration’s commitment to serve families across the country, with investments in priority areas such as behavioral health (mental health and substance abuse), maternal health, emerging health threats, science, data and research, tribal health, early child care and learning, and child welfare” the testimony states.
While the testimony acknowledges that the COVID-19 pandemic is still an ongoing fight, the FY2022 budget request places significant emphasis on preparing for the next public health crisis, with no mention of the CARES Act or any changes to the Provider Relief Fund.
