CMS provided clarification around the suspension of sequestration in a special edition of MLNConnects: Section 3709 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act temporarily suspends the 2% payment adjustment currently applied to all Medicare Fee-For-Service (FFS) claims due to sequestration. The suspension is effective for claims with dates of service from May 1 through December 31, 2020.
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Today Governor Wolf announced the creation of a new loan program, the Hospital Emergency Loan Program (HELP), that will provide short-term financial relief to Pennsylvania’s hospitals as they prepare for the growing surge of individuals infected with COVID-19 and the economic impact expected as a result of this surge. This loan will provide hospitals with immediate financial support for working capital to ensure they have sufficient personnel, equipment, and personal protective equipment.
The funding was dispersed by the Pennsylvania Infrastructure Investment Authority and will be administered by the Pennsylvania Department of Community and Economic Development through the Pennsylvania First Program (PA First).
Pennsylvania health care facilities licensed as hospitals by the Pennsylvania Department of Health under the Health Care Facilities Act of 1979 that are eligible to receive federal grant funding through the CARES Act are eligible for HELP. The maximum loan size is $10 million per hospital, at an interest rate of 0.5 percent.
HELP will allow hospitals to take responsive action now until funding through the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27, 2020, is dispersed completely, with the goal of easing the financial strain of the pandemic and smoothing the transition back into regular health care operation. Permitted expenses under HELP will mirror those under the CARES Act, allowing hospitals to close out their loan with CARES funding once it is received.
Applications will be available on the Pennsylvania Department of Community and Economic Development’s website starting at 10:00 am on April 13 and will be available through April 20. The costs must be incurred between March 1, 2020 and September 1, 2020.
From ACCSES:
The Federal Reserve made an announcement today that it would provide up to $2.3 trillion in loans to boost the economy. One of the loans they are creating is the Main Street Lending Program, which the Fed says “will enhance support for small and mid-sized businesses that were in good financial standing before the crisis by offering 4-year loans to companies employing up to 10,000 workers or with revenues of less than $2.5 billion. Principal and interest payments will be deferred for one year.
Firms seeking Main Street loans must commit to make reasonable efforts to maintain payroll and retain workers. Borrowers must also follow compensation, stock repurchase, and dividend restrictions that apply to direct loan programs under the CARES Act. Firms that have taken advantage of the PPP may also take out Main Street loans.”
The Federal Reserve announcement went on to say, “The Federal Reserve and the Treasury recognize that businesses vary widely in their financing needs, particularly at this time, and, as the program is being finalized, will continue to seek input from lenders, borrowers, and other stakeholders to make sure the program supports the economy as effectively and efficiently as possible while also safeguarding taxpayer funds.” Comments may be sent to the feedback form until April 16. The feedback form is here.
The next Community HealthChoices (CHC) Third Thursday webinar has been scheduled for April 16, 2020 at 1:30 pm. This webinar will focus on COVID-19 updates from the Office of Long-Term Living (OLTL) Deputy Secretary, Kevin Hancock.
In order to receive the call information, members must register prior to the start of the webinar.
Questions regarding the webinar should be directed to the OLTL Bureau of Policy Development and Communications Management at 717-857-3280.
The Centers for Medicare and Medicaid Services (CMS) received direction from President Trump to temporarily suspend a number of rules so that hospitals, clinics, and other health care facilities can boost their frontline medical staff as they take on the COVID-19 pandemic. The changes will focus on reducing supervision and certification requirements in order for practitioners to be hired quickly and perform work to the fullest extent of their licenses. As a result of this action, doctors can now directly care for patients at rural hospitals, across state lines if necessary without being physically present; Nurse practitioners can now perform some medical exams on Medicare patients at skilled nursing facilities so that patient needs can be met; Occupational therapists from home health agencies can now perform initial assessments on certain homebound patients; and Hospice nurses will be relieved of hospice aide in-service training tasks so they can spend more time with patients.
For additional guidance, CMS has published a list of workforce flexibilities that CMS has permitted thus far.
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