24 April 2020

Summary of Government Funding Targeting Health Care Providers

***Information and guidance in client updates was up to date at time of publication. During the pandemic, information and guidance has been changing rapidly. If you have any questions about the information contained in a client update, please contact the author(s) or your Miller Johnson attorney.***

Over the last several weeks, the government has allocated tens of billions of dollars to health care providers, states, and public health authorities in response to the COVID-19 pandemic. Some funds are part of general grants intended to help health care providers cover revenue shortfalls created by the pandemic. Other funds are part of governmental efforts to expand testing and telehealth or to protect and aid vulnerable populations. The funds will be distributed through several government entities included the Department of Health and Human Services (HHS) and the Federal Communications Commission (FCC).

$200 Million Under the COVID-19 Telehealth Program

The COVID-19 Telehealth Program provides $200 million in funding appropriated under the CARES Act to help health care providers expand telehealth services. Under the program, certain nonprofit and public health care providers are eligible to use the funds to fully cover their telecommunication services, information services and devices used to provide telehealth services.  Eligible health care providers must submit an application through the FCC. The application can be completed online at:

CDC Allocates $631 Billion to States for COVID-19 Testing and Tracin

In addition to the $25 billion recently allocated to testing under the Relief Bill, the CDC  announced it is awarding $631 million to 64 jurisdictions across the country through the existing Epidemiology and Laboratory Capacity Prevention and Control of Emerging Infections Disease (ELC) cooperative agreement.  Michigan is among the 64 jurisdictions receiving awards.  The awards can be used to conduct contact tracing, enhance testing capacity and monitor and protect high-risk populations within the state

$995 Million to Support Older Adults and People with Disabilities

Earlies this week, HHS announced $995 million in grants to help meet the needs of older adults and people with disabilities. The grants will fund home-delivered meals; home care services, respite care and other support for families and caregivers. $200 million will go to Home and Community Based Services and will be used to provide home health services and support for activities of daily living such as household chores and grocery shopping.  Another $480 million will be distributed to provide home delivered meals to older adults.  $85 million will be directed to provide direct support and services to individuals with disabilities. The funds can be used to ensure individuals with disabilities are able to safely stay in their homes or to return home following hospitalization or institutionalization. Additional funding will go to a variety of other programs help older adults, individuals with disabilities and other vulnerable populations. The funds will primarily be distributed to states, territories and tribes who will then allocate the funds to local service providers.

Another $40 Billion Distributed Under the CARES Act

On April 23, 2020, the Department of Health and Human Services announced an additional $40 billion will be distributed to health care providers. This is the second distribution from the $100 billion Emergency Funded created by the CARES Act.  This second distribution will be divided among two different groups of health care providers.  $20 billion of the fund will be distributed to all health care providers based on their share of 2018 net patient revenue. Distribution will begin on April 24, 2020 based on 2018 cost report data previously submitted to HHS.  If a health care providers has not submitted its cost report data it will need to submit their revenue data through a provider portal that is expected to be opened early next week.

In addition to the $20 billion general distribution, HHS announced an additional $10 billion will go to health care providers in COVID-19 hotspots.  Providers will have until Saturday, April 25, 2020 to submit data to HHS demonstrating their eligibility for some of the $10 billion distribution. HHS will use an unknown formula to calculate the amount each provider will receive, but HHS indicated health care providers in New York can expect to receive $4 billion from the fund.

Lastly, HHS also announced it will distribute $10 billion to rural hospitals and health clinics and $400 million to the Indian Health Service.  All of the funding is expected to be distributed over the next two weeks.

Clients with questions regarding how to access these funds are encouraged to reach out to their Miller Johnson attorney.