Due to the expansion of the third phase of payment, operators facing “major difficulties” may soon be relieved. In total, the plan adds another $4.5 billion.
The Ministry of Health and Human Services announced that it would increase its third-phase funding from the Provider Relief Fund to $24.5 billion. The money will get used for more than 70,000 living communities and other providers on the coronavirus pandemic front line. The funds have gotten expected to “suffice nearly 90% of the net change in revenue and expenses reported by each applicant due to the coronavirus pandemic in the first half of 2020.”
Argentum President and CEO James Barda said: “This is a huge influence and gratifying news for the assisted living industry-with this funding and additional provider relief from the next relief program Funding, today the providers of the entire industry will be a little easier,” said James Balda, President, and CEO of Argentum. “The income losses and expenditures these communities have suffered are huge. This fund will help make up most of these losses so that they can continue to take care of their residents and provide support for their specialized labor.”
David Schless, president of the American Housing Association for Senior Citizens, said that the “full-time press advocacy work” to raise funds finally showed positive results.
Schless said: “As the coronavirus is still spreading, these funds would not have been better. The operators have to work much harder to protect employees and residents. This vaccine will enter our communities in the coming months. Encouraging, but the financial needs of the industry will continue to grow.”
American Health Care Association/National Center for Assisted Living President and CEO Mark Parkinson (Mark Parkinson) said that the frontline heroes are working hard and doing what is needed to prevent the coronavirus from spreading; this puts “serious pressure” on employees. Consumables and testing capabilities.
Parkinson said: “Federal assistance is critical in situations where providers deal with record deaths and cases due to the high level of community spread. Therefore, many resources must get invested to fight this virus because it may cost money. It takes months to vaccinate our population, so these payments allow our providers to fight this terrible virus and keep our doors open.”
LeadingAge called the announcement “an important recognition of economic losses” and increasingly involved assisted living and other providers throughout the care process.
Payment starts on Wednesday and will continue until January.
HHS said that when it started analyzing the third-stage funding application, it realized that the application for lost revenue and net changes in expenditure would exceed the initial budget of $20 billion. The funds will make up 88% of the reported losses.
Barda said that payments to assisted living service providers in the second phase are still pending, and the providers are “urgently” needed to continue their business.
More than 35,000 applicants will not receive additional payments because they have not changed their income or operating expenses due to Covid-19 or because they have received funds equal to or more than 88% of the reported loss.
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