HHS allocating $560M in payments to healthcare providers impacted by COVID-19 pandemic
The U.S. Department of Health and Human Services (HHS) announced Thursday that it is making more than $560 million in Provider Relief Fund (PRF) Phase 4 general distribution payments to 4,100-plus providers nationwide.
“Provider Relief Funds have been a lifeline for healthcare providers across the country,” HHS Secretary Xavier Becerra said in a prepared statement. “From providing lifesaving care to tackling workforce challenges, these funds will help many healthcare facilities weather the pandemic’s continued impact. The Biden-Harris administration will continue to ensure our providers have the necessary support and tools to keep our families safer and healthier.”
The announcement means that almost $11.5 billion in PRF Phase 4 payments have now been distributed to more than 78,000 providers in all 50 states, Washington D.C., and five territories. This is on top of the Health Resources and Services Administration (HRSA) distributing American Rescue Plan (ARP) Rural payments totaling nearly $7.5 billion in funding to more than 44,000 providers since November.
In the statement, HHS said that Provider Relief Fund payments have been useful in helping providers prevent, prepare for, and respond to the coronavirus pandemic. In addition, providers have used the funds to remain in operation and to continue supporting patient care. Healthcare organizations that are experiencing workforce shortages and staff burnout are able to use the funds to support their recruitment and retention efforts.
“Healthcare providers have continued to lead the fight against COVID-19 from the frontlines,” HRSA Administrator Carole Johnson said in the statement. “The Provider Relief Fund is an important resource in helping to support this work and sustain health services and the dedicated healthcare workforce across the country.”
“Phase 4 payments have an increased focus on equity, including reimbursing a higher percentage of losses for smaller providers and incorporating bonus payments for providers who serve Medicaid, Children's Health Insurance Program, and Medicare beneficiaries,” HHS said in the statement.
Approximately 86% of all Phase 4 applications have been processed. The remaining applications will continue to be reviewed throughout early 2022, according to HHS.