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HHS Distributes Relief Funds to Children’s Hospitals

The Department of Health and Human Services (HHS) will begin distributing $1.4 billion in Provider Relief Fund payments to children’s hospitals.

HHS notes this allocation targets nearly 80 free-standing children’s hospitals, not affiliated with larger health systems, in need of relief due to response to the COVID-19 pandemic. Eligible hospitals are either exempt under the Centers for Medicare & Medicaid Services inpatient prospective payment system or are a Health Resources and Services Administration–defined children’s hospital graduate medical education facility.

HHS will distribute payments, totaling 2.5 percent of net patient care revenue, beginning the week of Aug. 17. The agency has made available a preliminary state-by-state breakdown of validated distributions, with 24 children’s hospitals still under validation review.

The $175 billion Provider Relief Fund was authorized by the Coronavirus Aid, Relief, and Economic Security Act and the Paycheck Protection Program and Health Care Enhancement Act. The fund is intended to support providers incurring health care–related expenses and lost revenue related to COVID-19 response efforts. To date, HHS has allocated more than $120 billion from the fund.

The association has a members-only COVID-19 funding tracker, capturing opportunities for essential hospitals to access needed resources. We encourage all members to visit the America’s Essential Hospitals coronavirus resource page for more information about the outbreak.

Contact Senior Director of Policy Erin O’Malley at eomalley@essentialhospitals.org or 202.585.0127 with questions.

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About the Author

Zina Gontscharow is a former senior policy analyst for America's Essential Hospitals.

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