Long-Term Care Facilities To Receive Pandemic Relief Funds

By Dan Hounsell, Senior Editor, Facility Market
September 22, 2021

The COVID-19 pandemic has taken a heavy toll on hea;thcare facilities of all kinds, but no sector has been hit harder than long-term care facilities. Now, some relief is on the way.

The federal government is making $25.5 billion in new funding available to healthcare providers, including assisted living operators, affected by the COVID-19 pandemic. The U.S. Department of Health and Human Services is making the funding available through the Health Resources and Services Administration. The funding includes $17 billion in Phase 4 Provider Relief Funds (PRF) covering a range of providers, including assisted living companies, that can document revenue losses and expenses associated with the pandemic. An additional $8.5 billion in American Rescue Plan funding will go to providers that serve Medicaid, Children’s Health Insurance Program or Medicare beneficiaries in rural locations.

PRF Phase 4 payments will be based on providers' lost revenues and expenditures between July 1 and March 31, 2021. To support providers with the most need, PRF Phase 4 will reimburse smaller providers who tend to operate on thin margins and often serve vulnerable or isolated communities for their lost revenues and COVID-19 expenses at a higher rate compared to larger providers. PRF Phase 4 will also include bonus payments for providers who serve Medicaid, CHIP, and/or Medicare patients, who tend to be lower income and have greater and more complex medical needs.

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