The financial support, according to ASHA ( American Seniors Housing Association), is finally on the way for assisted living providers.
The Department of Health and Humans Services (DHS) will soon give access to private pay assisted living providers.
The amount that got set aside for assisted living was not shared, according to a recent update from ASHA. Yet, the formula is supposed to be 2% of the gross revenue of 2019. The distributed funds from DHS have gotten sent to other organizations like children’s hospitals and Medicaid providers. It got announced to ASHA that additional funds will be on the way.
DHS did not respond to any requests for comments.
Argentum and ASHA recently stated that $10 billion get sent to senior living from the provider relief fund.
Covid-19 has caused severe financial tolls on private-pay senior housing and assisted living operators since March when the pandemic first hit the United States. According to a recent survey by NCAL, 26% of assisted living facilities could operate for another six months under these types of conditions.
Senior living providers have been asking for financial aid from the government with industry groups and ASHA pushing policymakers and lawmakers. The massive stimulus packages have sent funds to healthcare providers, but the money went to areas where Medicaid and Medicare are sources of revenue. $10 billion was set aside for skilled nursing facilities.
Yet, senior living has had very little federal relief. Some smaller organizations managed to get money from the Payroll Protection Program while $252 million in PPP loans in the industry.
However, the support barely covers the offset of the financial hit to senior living due to the pandemic. That is something that has been argued by industry advocates. The pandemic may cause adverse economic impacts of $58 million in a single year, based on an analysis that was released by Argentum and ASHA during April.
The distress had already shown up, especially for smaller organizations and those who were not financially secure before the pandemic happened.
Congress has been dealing with a stalemate about the next relief for the pandemic, with most Republicans in the Senate proposing a smaller bill. LeadingAge, an industry group, criticized the lack of financial support for senior care and housing providers.
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