$75 Billion COVID-19 Relief Bill for Hospitals

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$75 Billion COVID-19 Relief Bill for Hospitals

On April 24, 2020, the President of the United States of America, Donald Trump, signed the legislation stating that hospitals will receive COVID-19 related funding of $75 Billion dollars, as a response to fighting against the virus.

This $75 Billion was added to the $484 Billion coronavirus relief bill approved by the Senate. The additional relief bill came about less than a month after President Donald Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

This $2.2 trillion dollar stimulus package included over $100 billion for healthcare systems and providers. Even though 75 Billion dollars might look like a lot, it is only a fraction of what the hospitals are asking for.

The American Hospital Association (AHA) reported in a statement that Coronavirus Aid, Relief and Economic Security (CARES) funds are already being utilized by hospitals, clinics, and healthcare providers to increase capacity for more patients and provide quality care equally.

These funds are also allocated to exceptional cases that require constant attention and care of the healthcare providers.

Even though the CARES Act was welcomed by healthcare systems and providers, authority and management have stated that the initial payments were not enough to cover the lost revenues from temporarily canceling elective surgeries.

It is estimated by the American Medical Group Association (AMGA) much as $318 Billion is required by the healthcare providers to replace the projected lost revenues in the next four months.

With additional funding now provided to these programs, Congress can now focus on the next COVID relief package, known as COVID-19 Phase 4, which could be considered as early as May, according to Justin Elliott, APTA’s vice president of government affairs.

The additional funds of $75 Billion were referred to as COVID-19 Phase 3.5.

The American Hospital Association also emphasized the importance of paying attention to smaller hospitals. It stated that additional funds should and will go to the payroll protection program to help smaller hospitals meet payroll and other operating costs through lump-sum loans.

Major hospital systems have been forced to terminate and lay off workers due to low patient volume and the cancellation of elective procedures. Some workers who were lucky enough to avoid being terminated received a pay cut instead.

The 75 Billion is not for only “hospitals”; but it is also going towards any healthcare provider, profit entities, public entities, Medicare and their insurers, and for any organization that provides diagnoses and testing for the COVID-19 virus.

‘CARES 2,’ is the following service package to the first CARES initiative.

The $2.2 trillion Coronavirus Aid, Relief and Economic Security package that got approved last month, is rumored to add more funding for local, state, and tribal governments to pay essential workers upfront for fulfilling their duties under their government job.

This applies to teachers and others as well. This will be known as COVID-19 Phase 4.

The aim of additional funding Is to help hospitals and staff to bear and get through this horrific time smoothly.