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Hospital Fund Distribution Plan Could Disadvantage Hospitals in Greatest Need

FOR IMMEDIATE RELEASE

Statement attributable to:
Bruce Siegel, MD, MPH
President and CEO
America’s Essential Hospitals

WASHINGTON — We are eager for this week’s release of $30 billion from the Public Health and Social Services Fund but concerned by the basis for distributing these funds, as it could disadvantage some essential hospitals on the front lines of this crisis.

An allocation methodology that consists only of Medicare fee-for-service revenue could tilt the playing field against some essential hospitals, which care for disproportionate numbers of uninsured and Medicaid patients. It is especially concerning because their narrow margins and front-line role mean these hospitals are among those in greatest need of funding support during this public health emergency.

We appreciate that Centers for Medicare & Medicaid Services (CMS) Administrator Seema Verma acknowledged this distribution approach will fall short for many providers and that the agency will follow this release of funding with another focused on Medicaid-dependent providers.

We urge CMS to act quickly to ensure the essential hospitals leading our nation’s response to COVID-19 have the resources they need to withstand the dire public health threat and financial stress this epidemic creates.

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About America’s Essential Hospitals
America’s Essential Hospitals is the leading champion for hospitals and health systems dedicated to high-quality care for all, including the most vulnerable. We support our more than 300 members with advocacy, policy development, research, and education. Communities depend on essential hospitals to provide specialized, lifesaving services; train the health care workforce; advance public health and health equity; and coordinate care. Essential hospitals innovate and adapt to lead the way to more effective and efficient care. Learn more at essentialhospitals.org.

Contact:
Carl Graziano
cgraziano@essentialhospitals.org
202.585.0102

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