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HHS Announces additional $5 billion distribution to nursing homes

Nursing Facilities
By Michael R. Crowe, Harvey Tettlebaum & Max Anderson on August 18, 2020
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The Department of Health and Human Services (“HHS”) announced on August 7th details of the next CARES Act-authorized nursing home Provider Relief Fund (“PRF”) distribution. The PRF distribution will total $5 billion, and will be used to protect residents of nursing homes and long-term care facilities from the impact of COVID-19.

Half of the funds will be distributed directly to nursing home operators with no application process. Average-sized facilities that received an antigen testing device as part of a separate HHS initiative will receive $90,000 and those that do not receive the device will receive $170,000.

An additional $2 billion of the PRF distribution will be put toward a value-based payment program designed to reward operators that log average or better-than-average numbers of new COVID-19 cases. The program will be entirely prospective and will not penalize facilities for past performance. The program will also not penalize for admitting positive patients into dedicated COVID-19 units.

The remaining $500 million will apparently be used to offset other COVID related costs. There have been no official announcement concerning the use of those funds, but some sources are reporting that the funds will be used to help nursing facilities to set up dedicated COVID wings and buildings, and “for collaboration with outside groups” for defeating COVID.

This distribution joins an earlier $4.9 billion in COVID-19 relief sent directly to nursing facilities along with the general distribution of stimulus phases under the CARES Act.

For more information, please contact Harvey Tettlebaum or Michael Crowe with Husch Blackwell’s Post-acute care initiative.

Photo of Michael R. Crowe Michael R. Crowe

Mike’s practice focuses on health care, administrative law, nursing homes, assisted living, home health, managed care, hospitals, hospital districts, Medicare, Medicaid, CHIP, trade associations, health care programs, and health care consulting.

Read more about Michael R. CroweEmail
Photo of Harvey Tettlebaum Harvey Tettlebaum

With 50 years of experience in health law, Harvey has deep knowledge of the entire healthcare marketplace.

He represents providers and associations of healthcare providers across the care spectrum from acute to primary care, including mental health professionals, pharmacists and pharmacies, emergency medical

…

With 50 years of experience in health law, Harvey has deep knowledge of the entire healthcare marketplace.

He represents providers and associations of healthcare providers across the care spectrum from acute to primary care, including mental health professionals, pharmacists and pharmacies, emergency medical services, physicians and dentists.

Read more about Harvey TettlebaumEmail
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Max Anderson

I currently attend the University of Texas at Austin School of Law where I am pursuing a J.D. I recently graduated from UT Austin with a Bachelors degree in Philosophy and History with a certificate in the History and Philosophy of Science. My…

I currently attend the University of Texas at Austin School of Law where I am pursuing a J.D. I recently graduated from UT Austin with a Bachelors degree in Philosophy and History with a certificate in the History and Philosophy of Science. My course work focused primarily on the history of science, logic, and the philosophy of language.

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  • Posted in:
    Health Care
  • Blog:
    Healthcare Law Insights
  • Organization:
    Husch Blackwell LLP
  • Article: View Original Source

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