HHS Opens More Relief Funding for Assisted Living Providers

Assisted living providers will have an opportunity to receive additional federal funds to help offset the financial impacts of Covid-19.

HHS Opens More Relief Funding for Assisted Living Providers

Assisted living providers will have an opportunity to receive additional federal funds to help offset the financial impacts of Covid-19.

The Department of Health & Human Services (HHS) on Thursday announced the next phase of funding from the Provider Relief Fund. The funding includes $20 billion in aid for providers on the front lines of the pandemic.

Providers that have already received Provider Relief Fund payments can apply for additional funding that considers financial losses and changes in operating expenses caused by the Covid-19 pandemic, according to HHS. Previously ineligible providers — including companies that began practicing in 2020 — can also apply. Also eligible for payments under this phase of funding are behavioral health providers dealing with increased mental health and substance use issues exacerbated by the pandemic.

Providers can receive 2% of annual revenue from patient care, plus an add-on payment to account for revenue losses and expenses attributable to the pandemic. HHS will take into account the three factors to determine the amount of funding allocated to a provider:

  • Its change in operating revenues from patient care
  • Its change in operating expenses from patient care, including expenses incurred related to the coronavirus
  • Payments already received through prior Provider Relief Fund distributions

“We are extremely pleased to see this additional funding made available to the provider communities on the front lines of the pandemic,” said Argentum President and CEO James Balda in a press release about the new phase of funding. “While this added funding won’t make these communities ‘whole,’ it will offer essential relief the industry needs to continue prioritizing the health and safety of residents and staff.”

The start date for applications is Monday, Oct. 5, and the application deadline is Friday, Nov. 6. HHS is urging eligible providers to apply early.

“Do not wait until the last day or week of the application period,” the HHS release said. “Applying early will help to expedite HHS’s review process and payment calculations, and ultimately accelerate the distribution of all payments.”

The federal government formally announced that private-pay assisted living providers were eligible for funding under the Provider Relief Fund Phase 2 General Distribution allocation in September. HHS says it has so far issued about $100 billion in aid to health care operators from the Provider Relief Fund.

The latest round of funding comes amid a time of financial distress for many providers in the senior living industry. An August survey from the National Center for Assisted Living (NCAL) showed that 26% of providers said they could sustain operations at their current levels for just another six months without assistance. More recently, an analysis from HealthTrust estimated a $17 billion impact on providers this year due to Covid-19.

Written by Tim Regan

Our Mission & Vision

Haven Senior Investments’ vision is to serve those who care for senior citizens and others in need of safe and nurturing housing.

Our mission is to serve the owners, operators, buyers, sellers, developers, and investors in the seniors housing and assisted living industry by offering a range of services to help them maximize their objectives and investment returns.

Our purpose is to glorify God by building profitable and sustainable businesses that advance His Kingdom and His children.

The Haven team brings a unique combination of finance, real estate, business development, operations, and healthcare experience to serve our varied senior housing clients. We operate on a team approach, which allows our clients to benefit from the experience and expertise of the whole Haven team. Our efforts are focused on the areas of independent living, assisted living, active adult, and communities that specialize in Alzheimer’s and memory care.

Related Posts

The Emerging Landscape of Senior Housing: Challenges and Opportunities

As healthcare infrastructure investor Welltower highlights, the senior housing market presents a unique investment landscape, shaped by significant supply and demand imbalances and a crunch in available capital. In recent years, senior housing has faced a dynamic shift. The COVID-19 pandemic severely affected the sector, with high mortality rates and shutdowns leading to a dramatic

The Imperative for Aggressive Growth in Seniors Housing Development

As the global population continues to age at an unprecedented rate, the demand for senior housing is becoming more urgent. By 2050, the number of people aged 60 years and older is expected to double, according to the World Health Organization. This demographic shift is pushing operators in the senior housing sector to adopt more

Harnessing the Power of AI for Strategic Senior Housing Decisions with Kyle Gardner

The landscape of senior housing investments is undergoing a transformation, powered by the advancements in artificial intelligence (AI). In the latest episode of our podcast, we delve deep into this topic with the special guest Kyle Gardner, COO of NIC MAP Vision. Our discussion focuses on the data trends within the senior housing market, the

Scroll to Top

What are you looking for?

HHS Opens More Relief Funding for Assisted Living Providers

Input information to download the file