Issue link: https://beckershealthcare.uberflip.com/i/1424600
8 CFO / FINANCE HHS releases $25B+ in COVID-19 relief aid to hospitals, providers By Alia Paavola A er mounting pressure from med- ical groups and lawmakers, HHS on Sept. 29 opened applications for $25.5 billion in COVID-19 relief aid to hospitals and other providers. e funds being released include $8.5 bil- lion from the American Rescue Plan for ru- ral healthcare providers and an additional $17 billion for providers who can document revenue loss and expenses attributable to the pandemic. "is funding critically helps healthcare pro- viders who have endured demanding work- loads and significant financial strains amid the pandemic," HHS Secretary Xavier Becerra said in a news release. "e funding will be distrib- uted with an eye toward equity, to ensure pro- viders who serve our most vulnerable commu- nities will receive the support they need." HHS said it plans to allocate the $17 billion in funds to smaller providers who oen operate on thin margins. e decision to release the funds comes aer the American Hospital Association and law- makers penned letters urging HHS to distrib- ute the unused funds. In an Aug. 17 letter, the AHA said hospitals and health systems are finding "their resourc- es — human, infrastructure and financial — are being stretched to the brink" amid the COVID-19 surge driven by the delta variant. In addition, Republican lawmakers urged HHS in a Sept. 2 letter to provide a plan and timetable to disburse the money, saying it had been 11 months since the last release, ac- cording to e Wall Street Journal. "It is baffling to us that the department has failed to even promulgate a plan to distribute those funds to hospitals and providers dispro- portionately impacted by the current wave of Covid-19 cases," said the letter to HHS from Senate Minority Leader Mitch McConnell and other GOP senators. A bipartisan group of senators also sent a let- ter Aug. 26 saying hospitals were still waiting for relief announced last year. n COVID-19 will push hospital losses to $54B this year, report estimates By Ayla Ellison A new analysis shows the COVID-19 pandemic will continue to drive hospital and health system losses throughout 2021. The analysis, prepared by Kaufman Hall and released by the American Hospital Association Sept. 21, shows delayed care and higher expenses for supplies, labor and drugs will negatively affect the financial health of hospitals. The report projects hospitals across the nation will lose about $54 billion in net income this year, even after taking into ac- count relief provided under the Coronavirus Aid, Relief and Economic Security Act. Without federal relief funds, losses would be as high as $94 billion, according to the report. More than a third of hospitals are expected to end 2021 with negative margins, according to the analysis. "America's hospitals and health systems continue to face significant, ongoing instability and strain as the COVID-19 pandemic endures and spreads," Rick Pollack, AHA pres- ident and CEO, said in a news release. "With cases and hospitalizations at elevated levels again due to the rapid spread of the delta variant, physicians, nurses and other hospital caregivers and personnel are working tirelessly to care for COVID-19 patients and all others who need care." The analysis incorporates hospital performance data from the first two quarters of this year. Projections were made for the rest of 2021 based on that data. n Analysis: Nonprofits invest for returns, not mission By Ayla Ellison N onprofit hospitals and health systems are exper- imenting as venture capitalists for startups, but most of the time they aren't selecting invest- ments that put their humanitarian goals first, according to a Kaiser Health News analysis of IRS filings. For its analysis, KHN examined IRS filings from 1,632 nonprofit organizations that owned or operated a total of 2,568 hospitals. The analysis did not include invest- ments that some nonprofit systems kept in a separate organization or foundation. Four things to know: 1. Nonprofit hospitals and health systems had more than $283 billion in hedge funds, private equity, venture funds, stocks and other investment assets in 2019, ac- cording to the analysis. 2. Nonprofit hospitals and health systems classified 7 percent — $19 billion — of the total investments held in 2019 as principally devoted to their missions, the KHN analysis found. 3. Nonprofit healthcare organizations argue the invest- ments benefit their missions because they provide extra income and new software, devices and other innova- tions their hospitals use, according to KHN. 4. Several nonprofit hospital and health system venture capital funds have grown rapidly in recent years, with one topping $1 billion this year. n