Loan Repayment Looms for Hospitals
Unless Congress intervenes, hospitals will soon begin repaying massive federal loans they received to help them cope with the COVID-19 public health emergency.
The loans, authorized by the federal CARES Act, were made through the Accelerated and Advance Loan Program, and in all, Medicare made nearly $100 billion in such loans to providers. Under the legislation, Medicare was to begin recouping the loans 120 days after hospitals received them, with recoupment coming by Medicare ceasing to pay hospitals’ Medicare claims until the full amount of the loan was repaid.
Now the loans are coming due but hospitals are saying they are not ready to forego all of their Medicare revenue.
While some hospital groups have asked for 100 percent forgiveness for the loans, others are calling for a combination of extending the payback period and reducing the interest rate for those that fail to complete repayment in a timely manner.
In a letter to Pennsylvania senators Pat Toomey and Bob Casey, SNAP weighed in on this issue, urging them to work with their colleagues
… to forgive the federal Medicare revenue advanced to hospitals through the CARES Act’s Accelerated and Advance Payment Program. Because of the unprecedented length and persistence of this public health emergency, we believe many hospitals – especially safety-net hospitals – will never recover the revenue they have lost in recent months. Most of them expect to be able to restore financial equilibrium, but they will not be able to do so if they have this enormous debt hanging over their heads. Fourth, we
Both House Democrats’ HEROES Act and Senate Republicans’ HEALS Act attempt to address the loan situation – albeit in different ways – but neither calls for forgiving the loans entirely.
Learn more about the challenges hospitals face with their obligation to repay Accelerated and Advance Loan Program money and how Congress is looking at that challenge in this Washington Post article.
Included in this month’s edition are articles about:
The department announced that it will
DHS reminded personal care homes, assisted living residents, and intermediate care facilities that they must complete a baseline universal test for COVID-19 of all residents and staff no later than August 31, 2020. Those subject to this universal testing requirement, as mandated by the Secretary of Health, include any resident or staff person who has never been tested and any resident or staff person who was tested prior to June 12, 2020 and whose test result was negative. Learn more about the requirement
HHS has updated its
CMS hosts recurring stakeholder engagement sessions to share information related to the agency’s response to COVID-19. These sessions are open to members of the health care community and are intended to provide updates, share best practices among peers, and offer attendees an opportunity to ask questions of CMS and other subject matter experts.
The FDA updated its
Friday, July 31 is the deadline for businesses, including health care organizations, to apply for grants to support hazard pay for workers in life-sustaining occupations during the COVID-19 pandemic. See this
CMS has
The FDA has posted a
The Wolf Administration announced the availability of 24/7 call centers to provide clinical and operational support to long-term-care facilities as they seek to protect residents and staff from COVID-19. The call centers are run and staffed by health systems participating in the Regional Response Health Collaboration Program (RRHCP), an education and clinical support network launched for long-term-care providers earlier this month. The announcement, found
The Pittsburgh Tribune-Review
Department of State
The Department of Health and Department of Human Services are holding an informational webinar on Friday, July 24th from 9:00-10:00am EST to present an overview of the Regional Response Health Collaboration Program (RRHCP) available for long-term care providers state-wide. Interested parties can log into the webinar
Governor Wolf