Beginning April 10, the U.S. Department of Health and Human Services (“HHS”), assisted by UnitedHealth Group, began distributing the $30 billion to health care providers and health care systems. These payments are not loans and will not need to be repaid. This differs from the CMS Accelerated and Advance Payment Program, where the payments are loans to providers and must be repaid.
We previously wrote about the $100 billion in relief funds to hospitals and health care providers included in the CARES Act passed on March 27. (See “Senate Approves $100 Billion to Hospitals in COVID-19 Relief Package” and “CARES Act Provides Financial Relief for Health Care Providers.”) On April 10, the HHS released guidance pertaining to an immediate infusion of $30 billion into the health care system. The intent of these quick disbursements is to provide relief both to providers in areas heavily impacted by the COVID-19 pandemic and to providers who are struggling to keep their doors open because healthy patients are delaying care and canceling elective services.
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