On March 27, 2020, the President signed the bipartisan CARES Act that provides $100 billion in relief funds to hospitals and other healthcare providers on the front lines of the coronavirus response. This funding will be used to support healthcare-related expenses or lost revenue attributable to COVID-19, and to ensure uninsured Americans can get testing and treatment for COVID-19.
This funding will begin with an immediate distribution of $30 billion, with payments arriving via direct deposit beginning April 10, 2020, to eligible providers throughout the American healthcare system. These are payments, not loans, to healthcare providers, and will not need to be repaid.
The remaining $70 billion in relief is currently being prioritized to focus on providers in areas particularly impacted by the COVID-19 outbreak, rural providers, providers of services with lower shares of Medicare reimbursement or who predominantly serve the Medicaid population, and providers requesting reimbursement for the treatment of uninsured Americans.
For specific information on what healthcare providers are eligible for this initial funding, how payments distributions are determined, what to do if you are an eligible provider, how these payments apply to different types of providers, and further details of the CARES Act, click here.