U.S. Nursing Homes to Get Another $5 Billion in Pandemic Relief

Aug. 7, 2020, 10:12 PM UTC

U.S. nursing homes will get another $5 billion in federal pandemic relief funding, the Trump administration announced Friday.

Part of the money will go only to facilities that meet certain performance-based measures, unlike previous distributions from the Congress-approved provider relief fund. Facilities will be evaluated based on the local Covid-19 infection rate and the nursing home’s ability to minimize infections and fatalities among residents.

“By linking these funds to performance in controlling COVID-19, we are providing powerful tools and incentives for nursing homes to better protect their residents from the virus,” said Health and Human Services Secretary Alex Azar in a statement.

As of July 30, nursing homes and other long-term care facilities in 43 states reported 62,925 Covid-19 deaths, according to the Kaiser Family Foundation. That’s 44% of all Covid-19 deaths in those states.

About half of the $5 billion distribution will go toward funding increased testing, staffing, and purchase of personal protective equipment. Additional funding will target facilities that are establishing Covid-19 isolation wards. The balance of the $5 billion will be linked to nursing home performance.

The first $2.5 billion will be distributed in mid-August, followed by additional performance-based payments throughout the fall.

“We anticipate that linking payment to performance will be an effective means of holding nursing homes accountable, stimulating innovation, and encouraging them to reach beyond their own walls for infection control expertise and support,” said Thomas Engels, administrator of the HHS’s Health Resources and Services Administration.

In July, the CMS allocated $5 billion from the provider relief fund for nursing homes to use for extra staffing, testing, and technology to facilitate virtual visits with residents.


To contact the reporter on this story: Tony Pugh in Washington at tpugh@bloomberglaw.com

To contact the editor responsible for this story: Fawn Johnson at fjohnson@bloomberglaw.com

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