HHS to distribute $9B in COVID-19 relief funds to smaller providers this week

by Robert King | December 14, 2021

The Department of Health and Human Services announced it has distributed $9 billion in relief payments to providers to plug financial shortfalls caused by the pandemic, with more money going towards smaller providers.

The money is part of a $178 billion Provider Relief Fund and comes as HHS was criticized earlier in the year for not distributing the money fast enough. The agency said payments will reach providers later this week.

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“This vital funding will ensure critical healthcare services are delivered to communities across the country—including to those who are disproportionately impacted by the pandemic and medically underserved,” said HHS Secretary Xavier Becerra in a statement.

HHS announced the payment methodology in September in order to give providers more insight into how to qualify for the money.

“Approximately 75% of Phase 4 funding is being distributed based on expenses and decreased revenues from July 1, 2020, to March 31, 2021,” HHS said in a release.

The Health Resources and Services Administration is also reimbursing more losses from smaller providers that were hit especially hard by the financial crisis caused by the pandemic.

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