On August 14, 2020, the U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), announced an additional $1.4 billion in targeted Provider Relief Fund distribution funding to almost 80 free-standing children’s hospitals nationwide. The Provider Relief Fund was created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. It is intended to replace about 2% of provider organization revenues.

During the coronavirus disease 2019 (COVID-19), children’s hospitals have experienced decreasing consumer visits and increased costs. The costs were due to suspended non-emergency surgeries and need for additional personal protective equipment (PPE). Children’s hospitals also offered their capacity as a backup to other hospitals in support of local preparedness planning for COVID-19 case surges.

Eligible children’s hospitals can receive 2.5% of their net revenue from consumer services. To qualify for the distribution, free-standing children’s hospitals must either be an exempt hospital under the Centers for Medicare and Medicaid Services (CMS) inpatient prospective payment system (IPPS) or be a HRSA defined Children’s Hospital Graduate Medical Education facility. Qualifying free-standing children’s hospitals began receiving funds within a week of the announcement.

HHS distributed $1.0 billion to 56 children’s hospitals the week of August 17, 2020. HHS was conducting a validation review of an additional 24 children’s hospitals. HHS posted a preliminary state-by-state breakdown on the 56 validated distributions at https://www.hhs.gov/sites/default/files/safety-net-hospital-provider-relief-payment-state-breakdown-childrens-hospitals.pdf (accessed August 23, 2020).

This was reported by HHS on August 14, 2020.

Contact information: Provider Relief Fund, U.S. Department of Health and Human Services, 200 Independence Avenue Southwest, Washington, District of Columbia 20201; 202-690-6343; Email: media@hhs.gov; Website: https://www.hhs.gov/providerrelief.