HHS misallocated hospitals' pandemic relief funds, Congress alleges

The House Committee on Oversight and Accountability is investigating the Department of Health and Human Services' distribution of pandemic relief funds meant for struggling hospitals. 

In 2021, $178 billion was approved for the Provider Relief Fund to assist low-income hospitals struggling through the pandemic. A December article from The Wall Street Journal prompted Congress to look into where that money went, and why. 

"We are concerned about HHS's decisions to provide PRF funds to highly profitable hospitals in wealthy areas while rural hospitals risked going bankrupt as they tried to provide care to Americans in need," the committee wrote in an April 11 letter to Xavier Becerra, HHS' secretary. 

According to the letter, 1,257 hospitals that collectively reported $53.6 billion in profits received $16.7 billion from the PRF. Meanwhile, 1,644 hospitals that reported a collective $129.1 billion loss received $35 billion during the same time period. 

The committee requested that Mr. Becerra send documents and communications related to PRF funds and their distribution — including correspondences with the White House — by April 25.  

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