Coronavirus Relief Funding for Hospitals

Coronavirus Relief Funding for Hospitals

image of a hospital
Type: 
News

by Marian Shostrom and Pat Snyder, Health Care Issue Co-Chairs

The Kaiser Family Foundation (KFF) is a non-profit organization focusing on national health issues. It is a non-partisan source of facts, analysis and journalism (not affiliated with Kaiser Permanente).

In a May 13, 2020, report, KFF analyzed relief fund grants to hospitals under the CARES act and the Paycheck Protection Program and Health Care Enhancement Act, providing relief during the Coronavirus pandemic. These grants were determined by the Department of Health and Human Services (HHS). Hospitals with the greatest share of revenue from private insurance received more than twice as much as hospitals with the lowest share of private insurance. Private insurance (such as Medicare Advantage plans) typically reimburses hospitals at twice the rate of Medicare. Hospitals that get most of their revenue treating people who are on Medicare and Medicaid, such as the Contra Costa Regional Medical Center, are typically reimbursed at much lower rates. The formula that HHS used gave an average of $44,321 per bed to high-income hospitals, and an average of $20,710 per bed to low-income hospitals. HHS could have used a different formula to distribute these public funds more evenly.

These grants provide less relief to hospitals serving the most vulnerable populations, and more relief to hospitals serving more privileged populations. The LWVUS joined other organizations in asking Congress to formulate a COVID response plan that ensures access to quality health care for all, and provides targeted relief for those most impacted.

Read the full report here.

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