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CARES Act Provisions for Hospitals, Medical Practices, Nursing Home Facility Changes

At the time of publication, there are over 175,067 cases confirmed or under investigation and 3,415 deaths in the United States due the Coronavirus Disease 2019 (COVID-19)1. COVID-19 is fundamentally changing the national healthcare system. The passage of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act)2 last Saturday provides $2.2 trillion to stabilize the economy. Of that, $150 billion is set aside for healthcare providers in the form of grants or loans.

  • These funds may be used to make necessary facility changes arising from COVID-19’s impact on treatment and protective protocols, including increased telehealth capabilities in Federally Qualified Health Centers (FQHCs) and Rural Health Clinics, increased capacity for isolation beds, emergency services, and on-site lab testing in inpatient, post-acute settings, and more.
  • In addition, the CARES Act authorizes low-interest loans to companies of fewer than 500 employees, including many medical practices and ancillary services, and allocates $17.5 billion for expanded capacity in military and VA Medical Centers and clinics.

A second major stimulus package is expected in the next two to three months. Much of the funding is expected to be targeted at gaps in the healthcare delivery system not previously addressed by the CARES Act.

ERDMAN is monitoring these events closely and we welcome your comments. For more information, please contact us.

  1. Center for Systems Science and Engineering (CSSE) at Johns Hopkins University (JHU). “Coronavirus COVID-19 Global Cases.[Interactive Web Source, Updated every 15 minutes].” Hosted by GitHub and ESRI Living Atlas. Retrieved on Mar. 31, 2020 at 12:15 PM CDT from https://www.arcgis.com/apps/opsdashboard/index.html#/bda7594740fd40299423467b48e9ecf6?ocid=eventhub.
  2. GovTrack.us. (2020). “S. 3548 — 116th Congress: CARES Act.’ Retrieved from https://www.govtrack.us/congress/bills/116/s3548.

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