Part of the CARES Act, which Congress enacted to help provide financial support to the country during the COVID-19 crisis, included the provision of $50 billion to providers through a special Provider Relief Fund. The funds were issued over 2 installments: $30 billion in the initial distribution and $20 billion in the second — DataGen has estimated how the $50 billion funding was divided among the hospitals in the 50 states.
To understand how this payment was allocated, consider the following:
- The remaining $20 billion of the $50 billion was distributed to Medicare providers proportional to providers’ share of net patient revenue.
- Hospitals throughout the US received approximately 43% of the allocated $50 billion with the balance going to other providers, i.e. Skilled Nursing Facilities, Home Health providers, MDs, etc.
- DataGen analyzed provider-specific estimated distributions for hospitals throughout the country using the following formula: (Individual provider revenues/$2.5 trillion) X $50 billion = Expected combined general distribution.
With the previously listed factors in mind, and by capturing fiscal year 2018 annualized net patient revenue from Worksheet G-3, Line 3, utilizing the fourth quarter 2019 Healthcare Cost Report Information System (HCRIS), we were able to estimate how much funding each state received, as reported below.
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