HHS Announces $7.5 Billion in ARP Rural Payments Are Being Distributed
On Nov. 23, the U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), announced via a press release that it began distributing $7.5 billion in American Rescue Plan (ARP) Rural payments to providers and suppliers who serve rural Medicaid, Children's Health Insurance Program (CHIP), and Medicare beneficiaries.
The release states that “The Biden-Harris Administration is committed to providing much-needed relief to rural providers who historically operate on thin margins and have had their financial challenges further exacerbated during the pandemic. The average payment being announced today is approximately $170,700, with payments ranging from $500 to approximately $43 million. More than 40,000 providers in all 50 states, Washington, D.C., and six territories will receive ARP Rural payments.”
Further, “Rural providers play an integral role in the Administration’s focus on addressing health equity. Research has found that 47 percent exit disclaimer icon of rural providers were operating in the red pre-pandemic, and this Administration has heard from providers on the ground that the pandemic worsened this reality. To help mitigate some of these pandemic-related financial losses, providers were invited to begin applying for this ARP Rural relief funding starting September 29, 2021 and asked to complete their applications by November 3, 2021. In just three weeks, HRSA processed nearly 96 percent of the more than 55,000 ARP Rural applications submitted. Many ARP Rural payment recipients will also be eligible for additional funding through the $17 billion Provider Relief Fund (PRF) Phase 4 opportunity that was also made available during the same time period. Providers could apply for both opportunities through a single application.”
HHS Secretary Xavier Becerra was quoted in the release saying that “Healthcare providers in rural communities have been hit hard by the COVID-19 pandemic, and they continue to experience significant financial hardships. The infusion of these funds will be critical to ensuring rural communities maintain access to high-quality health care and addressing urgent needs like workforce recruitment and retention.”
The release concludes that this funding will help healthcare providers stay open, address workforce challenges, and make up for lost revenues and increased expenses. “Specifically, providers can use these funds for salaries, recruitment, or retention; supplies such as N95 or surgical masks; equipment like ventilators or improved filtration systems; capital investments; information technology; and other expenses related to prevent, prepare for, or respond to COVID-19,” the release says.
