Giving Compass' Take:

• A report at Urban Institute finds that congress' distribution of COVID-19 funding has favored larger hospitals with more financial flexibility.

• How might the distribution of COVID-19 funding limit access to health resources for those in marginalized communities? 

• Look for funds to help support hospitals in communities with limited access to COVID-19 funding.

Congress has approved $175 billion in grants to support hospitals and other health care providers with additional expenses and lost revenue caused by the COVID-19 pandemic. On May 1, the US Department of Health and Human Services (DHHS) distributed $12 billion in high-impact funding to 395 hospitals nationwide that had admitted at least 100 or more COVID-19 patients between January 1 and April 10, 2020.

The distribution of these high impact funds was controversial. Although hospitals receiving the grants were undoubtedly on the frontlines in the early days of the pandemic, there were concerns the arbitrary April 10 cutoff and the 100-inpatient caseload requirement disadvantaged smaller hospitals and those in areas of the country hit harder by the coronavirus somewhat later. In addition, the first $50 billion in general relief grant payments, which were distributed based on a provider’s patient revenue from a previous year, not its COVID-19 caseload, also favored larger hospitals that were financially better off.

The DHHS announced a second round of COVID-19 hot-spot payments on July 17 that was based on a modified formula for hospitals with “over 161 COVID-19 admissions between January 1 and June 10, 2020, or one admission per day, or that experienced a disproportionate intensity of COVID-19 admissions.” Given the persistence of the pandemic and potential gaps in this payment formula, the new infusion of funds could help, but it might not be enough.

We can’t overstate the importance of keeping the country’s hospitals prepared to care for patients with COVID-19 and other health care needs. It will be critical to track and examine whether subsequent distributions of high-impact and other relief funds are reaching providers and communities with the greatest need.

Read the full article about the distribution of COVID-19 funding at Urban Institute.