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Health Care Enhancement Act Summary for Healthcare Providers

by Bill Brause
April 27, 2020

On April 24, 2020 the Paycheck Protection Program and Health Care Enhancement Act was signed into law. The Act amends the Coronavirus Aid, Relief, and Economic Security Act ("CARES ACT") passed in late March and provides for additional funding to eligible healthcare providers through several avenues.

Understanding the amendments and impact they can have to your organization can be daunting, time-consuming and confusing. To make this easier, we have consolidated the revisions here for an easy reference to everything you need to know.

  • $75B appropriated to the Department of Health and Human Services for "Public Health and Social Services Emergency Fund" (this is an addition to the $100 Billion appropriated in the original CARES Act).
    • To prevent, prepare for, and respond to coronavirus.
    • To be distributed via "grant or other mechanisms" to "eligible health care providers for health care related expense or lost revenues that are attributable to coronavirus". Submitting an application is required.
      • "Eligible health care providers" means public entities, Medicare or Medicaid enrolled suppliers and providers, and such for-profit entities and not-for-profit entities...that provide diagnoses, testing, or care of individuals with possible/actual cases of COVID-19.
  • Funds can be used for:
    • Building/construction of temporary structures.
    • Leasing of properties
    • Medical supplies and equipment, including PPE and testing supplies
    • Increased workforce and trainings
    • Emergency operation centers
    • Retrofitting facilities
    • Surge capacity
  • Recipients of payments must submit reports to maintain documentation as the Secretary of Health and Human Services determines.
  • The use of the funds is subject to audit by the Office of Inspector General of the Department of Health and Human services, no later than 3 years after final payment is made.
  • $25B appropriated for COVID-19 testing based on allocation formulas
    • $11B for States, localities, territories or tribes including support for workforce, laboratories, community-based testing sites, health care facilities, etc.
    • $2B applied to Public Health Emergency Preparedness cooperative agreement
    • Secretary of Health & Human Services may satisfy the funding thresholds by making awards through other grant or cooperative agreement mechanisms.
    • $1B to the CDC
    • $306M to the NIH-National Cancer Institute
    • $500M to the NIH-National Institute of Biomedical Imaging and Bioengineering
    • $1B to the NIH-Office of the Director
    • $600M to Health Resources and Services Administration-Primary Health Care for grants under the Health Centers program as defined by section 330 and for grants to FQHCs
    • $225M to rural health clinics through grants or other mechanisms
    • $1B to cover testing for the uninsured

As we continue to exist in a complex and ever-changing world, more information will undoubtedly come out on the Health Care Enhancement Act. We at Armanino are committed to helping you navigate through these difficult times. Contact us with any questions and be sure to check back regularly as we will continue to monitor the situation and provide updates as appropriate.

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