Whereas many of the supplier help has been distributed, the Biden administration is predicted to start doling out the remaining funds, estimated at
Whereas many of the supplier help has been distributed, the Biden administration is predicted to start doling out the remaining funds, estimated at $25 billion of the unique $178 billion, mentioned Kristen O’Brien, a vp for McDermott+Consulting in Washington, D.C. Hospitals are asking for extra time to spend the cash.
How the help was spent has not been totally documented. Whereas the bigger hospital networks aggressively sought the funds from the beginning, smaller organizations, youngsters’s hospitals and people in rural areas or serving giant numbers of low-income sufferers had extra problem securing the help due to the way in which the funding method was structured.
In a later spherical of funding choices, officers with the Division of Well being and Human Providers reviewed functions extra carefully, and in some instances, lowered or denied requests, Ms. O’Brien mentioned.
Grants given after the preliminary rush had been extra focused, to these hospitals in Covid sizzling spots or rural areas. A couple of giant chains, together with HCA Healthcare and the Mayo Clinic, returned not less than a few of the cash, within the wake of disclosures that wealthier hospitals had obtained much more help whereas reporting wholesome earnings.
Total, the help program did stop hospital closings, mentioned Ken Marlow, a lawyer with Okay&L Gates in Nashville, who advises hospitals. “We haven’t seen an actual avalanche of those distressed hospitals coming available on the market.”
However some could not find a way to withstand takeovers or mergers. “These suppliers are probably extra distressed because of the stress of the pandemic and must be pondering arduous in regards to the future, their survival,” mentioned Torrey McClary, a lawyer with Ropes & Grey who additionally counsels hospitals.