From the office of Senator Charles Schumer:
Schumer Pushed For An Extra $10B Hot Spot Formula As Part Of ‘Corona-3’; New York Health Care Providers Will Get Lion’s Share Of Funds To Help Keep Frontline Fight Going
New York Will Also Receive Billions More In The Coming Months
Schumer: Lion’s Share Of Hot Spot Funds Are On Their Way To New York – And We Need Them!
U.S. Senator Charles Schumer announced today that New York hospitals and providers will receive $4.3 billion of a new $10 billion allocation designated for ‘hot spots.’ Schumer said New York will receive the lion’s share of these funds and that he pushed the Trump administration to quickly allocate the health money, which was secured as part of the CARES Act, also known as ‘Corona-3.’ Schumer added that New York will get billions more in the coming months.
“The lion’s share of hot spot funds – more than $4 billion dollars – are on the way to New York right now, and we sure need them,” said U.S. Senator Charles Schumer. “Our hospitals and providers have been the vanguard in the fight against the coronavirus, and these critical dollars will help keep the fight against the virus going strong. New York and its hospitals have been amongst the hardest hit in the nation, and with this funding going out, the frontline fight being waged by our health care system and its incredible workforce will receive the hot spot dollars they need, and so very much deserve to keep saving lives.”
According to Newsday, “New York State health care systems collectively expect losses of more than $1 billion during the height of the Covid-19 pandemic. The losses stem from hiring extra staff to treat patients, the costs of PPE and lost revenue due to the ban on elective surgeries.”
In pushing the administration to move on these hot spot funds, Schumer had said, “across the state of New York, hospitals and health systems report that they are losing hundreds of millions of dollars per month because of cancelled elective procedures, increased staffing and overtime costs, expanded bed capacity, and increased spending on supplies and equipment to meet the surge in COVID-19 patients. The strain on hospitals and health systems is felt even more acutely in regions like the New York metropolitan area where the bulk of COVID-19 patients are being treated at this time. These costs obviously do not exist evenly across the country, and it is therefore crucial that subsequent rounds of funding provide an adjustment for hot spots like New York.”
The CARES Act included $100 billion in additional funding for new programs to provide grants to hospitals, public entities, not for profit entities, and Medicare and Medicaid enrolled suppliers and institutional providers to cover unreimbursed health care related expenses or lost revenues attributable to the public health emergency resulting from the coronavirus. The bill that passed the Senate yesterday includes an additional $75 billion for this fund.