Collins-Shaheen Provider Relief Fund Letter

A letter led by Sens. Susan Collins and Jeanne Shaheen, signed by 43 senators total of both parties, urges HHS Secretary Xavier Becerra to release plans for more than $50 billion in unspent Covid-19 relief funds.

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Collins-Shaheen Provider Relief Fund Letter

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Rachel Cohrs

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August 26, 2021

The Honorable Xavier Becerra

Secretary
U.S. Department of Health & Human Services
200 Independence Avenue, S.W.
Washington, D.C. 20201

Dear Secretary Becerra:

We write today to ask that the Department of Health and Human Services (HHS) provide
an immediate update on its plans to distribute the unobligated funds remaining in the Provider
Relief Fund (PRF) and other health care relief programs. Over the course of the pandemic,
Congress has appropriated $178 billion for the Provider Relief Fund as well as an additional $8.5
billion for rural providers. Hospitals, nursing homes, assisted living providers, health clinics, and
other health care providers need these funds to help weather the financial difficulties created by
the pandemic. In rural areas in particular, the PRF has prevented facilities that struggled before
and during the pandemic from falling into bankruptcy or closing entirely.

Regrettably, the PRF funding distribution process has been uneven. Shifting guidance,
difficulties in reconciling tax information, the absence of a formal appeals process, and other
technical problems have plagued the program. Some providers are still waiting for funding from
PRF distributions that were announced last year. Furthermore, plans for additional PRF
distributions have been opaque. Financial losses occurring between the end of 2020 and the
beginning of 2021 have not been adequately considered. In addition, some provider types, such
as senior care facilities, have been underrepresented in previous rounds of funding.

On July 19, the Government Accountability Office reported that about 25 percent of
Provider Relief Fund appropriations and all of the rural provider funding remained unobligated
as of May 31, 2021. GAO found that “the most current spend plans generally do not include time
frames for obligating the remaining funds, which is useful information for oversight and
informing future funding decisions by Congress.” GAO recommended that HHS communicate
information about, and facilitate oversight of, the department’s use of COVID-19 relief funds by
providing projected time frames for its planned distributions in the spend plans it submits to
Congress.

We fully agree with GAO’s assessment and ask that HHS announce and implement its
plans for additional disbursement of provider relief funds. As the health care provider
community continues to respond to the challenges posed by the pandemic, this funding should be
released without any further delay. Thank you for your attention to this matter. We look forward
to your response.

Sincerely,

Susan M. Collins Jeanne Shaheen

United States Senator United States Senator
Kyrsten Sinema Lisa Murkowski
United States Senator United States Senator