Hospitals and other healthcare providers that have paid billions of dollars in settlements to the federal government over the past 10 years to resolve allegations of inflating Medicare or Medicaid expenses have received $50 billion in interest-free loans and grants from HHS to address financial damage caused by the COVID-19 pandemic, according to Bloomberg Law.
Healthcare providers that settled cases involving allegations of Medicare fraud or overbilling received more than $36 billion in interest-free loans from HHS to address cash flow shortages caused by the pandemic. Providers accused of Medicare fraud also received more than $20 billion in federal grants meant to cover lost revenues and expenses tied to the pandemic, according to the report.
Healthcare companies that are banned from doing business with Medicare did not receive the grants or loans, according to the report. However, hospitals and other providers with past settlements were not barred from receiving Medicare advance payments or grants.
Hospitals that received Medicare advance payments have seven months to a year to repay the loans without interest. The grants do not have to be repaid.
Access the full Bloomberg Law article here.
More articles on healthcare finance:
Illinois health system furloughs 460 workers
Financial fallout from COVID-19: 10 hospitals laying off workers
Hospitals identify possible compromise in battle over price disclosure