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HHS to Release $25B in Funding to Medicaid Providers and Safety-Net Hospitals

The Department of Health and Human Services (HHS) just announced additional distributions from the Provider Relief Fund (PRF) to eligible Medicaid and Children’s Health Insurance Program (CHIP) providers, that participate in state Medicaid and CHIP programs.

HHS will distribute $15 billion to Medicaid and CHIP providers and another $10 billion to safety-net hospitals after facing criticism from Congress on why these providers haven’t received previous distributions from the PRF.

Updated: HHS plans to release an additional $10B in COVID-19 Funds to hospitals in “high-impact” areas. Learn more about how they plan to distribute these additional funds here.

Updated: HHS plans to release an additional $4B in COVID-19 Funds. Learn more about how they plan to distribute these additional funds here.

The funding announcement on June 9, 2020, will apply to providers that have not received any money from a $175 billion PRF passed by Congress a few months ago. HHS said the distribution to safety-net providers will happen this week and on June 10, 2020, HHS will launch a new portal to allow eligible Medicaid and CHIP providers to report their annual patient revenue that will be used to calculate their payment.

The payment to each provider will be at least 2% of reported gross revenue from patient care; the final amount each provider receives will be determined after the data is submitted, including information about the number of Medicaid patients providers serve. -HHS

HHS added that Medicaid and CHIP providers can expect to receive the funding as soon as 10 days after they submit requested information through the portal.

For more information or questions, please contact a member of Withum’s Healthcare Services Group.

HHS is distributing an additional $10 billion to safety-net hospitals. To qualify, hospitals must have average uncompensated care per bed of at least $25,000, the profitability of 3% or less and a Medicare Disproportionate Payment Percentage of 20.2% or greater.

The payments to safety-net hospitals will occur this week, and each hospital will receive between $5 million and $50 million, per HHS.

Healthcare Services

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