Posternak Blankstein & Lund LLP is now Arent Fox. Read the press release

Coronavirus Aid, Relief, and Economic Security Act

The soon to be passed Coronavirus Aid, Relief, and Economic Security Act includes these key details surrounding the Health Care Industry, Not-for-Profits, and debt restructurings. 

Health Care

  • $100 billion in direct financial aid to health care institutions (Special Public Health and Social Services Emergency Fund Allocation)
  • $1.3B for supplemental awards targeted to community health centers for detection, prevention, diagnosis and treatment of COVID-19 (Section 3211)
  • Medicare sequester countermanded – lifts related 2% reduction from May 1st to December 31st (Section 3709)
  • Medicare Hospital Inpatient Prospective Payment System add-on payment of 20% for COVID-19 patients during the emergency period (Section 3710)
  • Increasing access to post-acute care during the emergency period by waiving Inpatient Rehab Facility 3-hour rule to permit transfers out of the hospital facility to make room for COVID-19 inpatients (Section 3711)
  • Revising payment rates for durable medical equipment under the Medicare program by suspending planned reductions through the duration of the emergency period (Section 3712)
  • Importantly, revised payment rates for items and services on March 6, 2020 (and through the emergency period) from 100% of the adjusted payment amount to (i) 75% of the adjusted payment amount and (ii) 25% of the adjusted fee schedule (Section 3712)
  • Hospitals can elect to receive up to 100% of Medicare prior period payments (125% for critical access hospitals) for up to a 6-month period, as an advance, with loan repayment not starting for four (4) months and have twelve (12) months to repay without interest (Section 3719)
  • Delay of Disproportionate Share Hospital (DSH) reductions through November 30, 2020 (Section 3813)

Not-for-Profits (Including Health Care Institutions)

  • Under the 5-year loan program to be developed by Treasury, low-interest rate program targeted to not-for-profits with 500-10,000 employees with no principal and interest due for at least 6 months (Section 4003)

Debt Restructurings (Section 4013)

  • From March 1, 2020 and ending on earlier of December 31, 2020 or through the emergency period and 60 days thereafter
  • Financial institutions may elect to suspend the requirements under GAAP for loan modifications that would otherwise be categorized as a troubled debt restructuring
  • The rationale for loan modifications must be related to COVID-19

A New Marshall Plan: Congress Nears Passage of CARES Act

Contacts

Continue Reading