Coronavirus Aid Distribution Methods Still Disfavor Hospitals Most in Need

Disbursement draws renewed scrutiny after some funds are returned by hospitals that didn’t need it or were closed

By Stephanie Armour of The WSJ. Excerpts:

"The Trump administration’s distribution of about $175 billion in federal aid to health-care providers has channeled more of that money to profitable hospitals and less to struggling facilities that most need the support amid the coronavirus pandemic, drawing renewed scrutiny and criticism by lawmakers and industry groups.

For hospitals, the Department of Health and Human Services allocated the initial $50 billion round of the aid based on their Medicare reimbursements and patient revenue. That puts hospitals heavily reliant on Medicaid, the federal-state program for low-income and disabled people, at a disadvantage."

"Hospitals that in normal times derive most of their revenue from patients with private insurance received more than twice as much federal coronavirus relief funding per bed than the hospitals that get the smallest share of private insurance money, according to an analysis by the Kaiser Family Foundation.

Hospitals in the top 10% based on share of private insurance revenue received $44,321 per hospital bed, more than double the $20,710 per hospital bed for those in the bottom 10% of private insurance revenue, the analysis found."

"All hospitals have received distributions that are proportionate to their total revenues from all sources, including Medicaid, Medicare and private insurers, an HHS spokeswoman said. This approach allowed these hospitals to receive funds quickly, she said.

HHS also has distributed funds directly to hospitals treating the most coronavirus patients, hospitals in rural areas with lower margins and less resources and skilled nursing facilities which handle a large portion of cases, the spokeswoman said."

"HHS officials said congressional lawmakers have given the agency conflicting directions, with some urging it to slow down and do more oversight and others demanding a rapid-fire distribution pace."

"Some hospitals that received the money returned it, saying it wasn’t needed, and some funds were returned because they had gone to facilities that were closed, HHS said. Some hospital groups say they have gotten a fraction of what they expected under the federal stimulus package."