Hospital Funding Included in Federal COVID-19 Stimulus Package

Posted on March 28, 2020

U.S. hospitals will receive more than $100 billion to respond to the 2019 Novel Coronavirus (COVID-19) pandemic as part of the bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act signed by President Donald Trump March 27.

United States Capitol BuildingThe hospital funding is one piece of the nearly $2 trillion package, which is aimed to help individuals, families and businesses impacted by the pandemic and was approved by the U.S. Senate March 26 and the House March 27.

The largest pool of funds is $100 billion for eligible healthcare providers to assist with healthcare-related expenses or lost revenues attributable to COVID-19. Funds are to be disbursed on a rolling basis through “the most efficient payment systems practicable to provide emergency payment.” The MHA will work closely with the American Hospital Association (AHA) and members of the Michigan congressional delegation to move money to Michigan hospitals as quickly as possible.

Hospitals also benefit from several positive changes to reimbursement, including the delay of Medicaid and Medicare disproportionate share hospital cuts, temporary suspension of the sequestration reduction, and a 20% add-on to Medicare payments for COVID-19 patients. More specific information for Michigan hospitals will be available in the coming days.

The MHA has worked closely with the AHA and the Michigan congressional delegation to ensure federal lawmakers understand the needs in Michigan and prioritized healthcare in its response to COVID-19. MHA members and healthcare advocates have sent nearly 50 messages to lawmakers in support of the CARES Act.

In a statement, MHA CEO Brian Peters thanked the Michigan congressional delegation, but said more work remains as hospitals serve as the front line of the U.S. defense against COVID-19. Members with questions may contact Laura Appel at the MHA.


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  • Hospital Funding Included in Federal COVID-19 Stimulus Package

Tags: Laura Appel, Coronavirus, COVID-19, CARES

Posted in: Member News, Top Issues - Healthcare

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