Ppp for Critical Access Hospitals Act

Floor Speech

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Ms. COLLINS. Mr. President, I rise today to introduce legislation to allow nonprofit critical access hospitals (as defined by the Centers for Medicare & Medicaid Services) that are undergoing Chapter 11 bankruptcy reorganizations to apply for forgivable loans under the Paycheck Protection Program, if they are otherwise eligible. The language of my bill, the ``PPP Critical Access Hospitals Act,'' mirrors language originally introduced by Rep. Golden that was included in the House-passed ``HEROES Act.''

While hospitals are not prohibited from participating in the PPP, those that have previously or are currently under bankruptcy protection have been unable to access PPP funds, due to an interpretation of underlying Small Business Administration 7(a) program rules. While I recognize the importance of protecting taxpayer investments in the SBA 7(a) program, the PPP program, which I coauthored along with Senators Rubio, Cardin, and Shaheen, is by design largely forgivable when used for eligible expenditures.

The hospitals that would benefit from this bill are critical infrastructure in the COVID-19 response effort, and many have experienced substantial increases in expenses associated with preparing for and responding to the pandemic. They simultaneously faced sharp declines in revenue associated with declining patient volumes due to the cancellation of routine and elective procedures, in order to protect public health and conserve limited supplies of Personal Protective Equipment, consistent with guidance from the Centers for Medicare and Medicaid Services.

While these entities are few in number, they are vitally important to the communities they serve, both as frontline health care providers during this public health emergency and as anchor institutions that provide the paychecks and local economic stability that Congress intended the Paycheck Protection Program to preserve. These institutions need temporary financial assistance to weather sharp revenue decreases that have resulted from Federal and State instructions to cancel elective medical procedures as part of COVID-19 response preparedness. Expanding the PPP to include these key employers will allow them to keep their doors open until they can resume normal operations once pandemic-related disruptions to their operations have passed.

Two institutions in Maine that would benefit from this bill are Penobscot Valley Hospital in Lincoln, and Calais Regional Hospital, in Calais. Both are in the midst of Chapter 11 proceedings, and both have suffered serious revenue shortfalls due to the cancellation or scaling back of elective procedures during the pandemic.

The bill I am introducing today is carefully targeted to address a unique financial situation that frontline critical access hospitals face during this public health emergency. I urge my colleagues to support it.

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