Bennet, Colleagues Urge HHS to Keep Major Cities from Draining Rural Healthcare Provider Relief Funds

Press Release

U.S. Senators Michael Bennet (D-Colo.), Joe Manchin (D-W.Va.), Susan Collins (R-Maine), Jeanne Shaheen (D-N.H.), Jon Tester (D-Mont.), Maggie Hassan (D-N.H.), and Angus King (I-Maine) urged the U.S. Department of Health and Human Services (HHS), in a bipartisan letter, to follow the intent of Congress for provisions in the American Rescue Plan to support health providers, specifically $8.5 billion in funding for rural healthcare providers.

The Health Resources and Services Administration (HRSA) has indicated it may ignore the definition of a rural provider which is outlined in the American Rescue Plan, allowing large hospitals in cities like Chicago and New York City to drain the $8.5 billion intended for rural providers in states like Colorado.

Bennet and the senators said: "We write to you regarding the distribution of funds from the American Rescue Plan to support healthcare providers that serve rural patients. As you review applications for this funding, we strongly urge the Department of Health and Human Services (HHS) and the Health Resources and Services Administration (HRSA) to follow the law as written in Section 9911 of the American Rescue Plan Act (ARPA) (P.L. 117-2) by approving applications for rural funding only for those providers that meet the clear statutory definition of "rural provider.'"

Last year, at least 19 rural hospitals closed, exacerbating access to care issues in rural America that already threatened critical lifelines for almost 60 million Americans.

"The ARPA-Rural set aside funding is critical to serve rural providers, patients and communities that are frequently shut out of important funding opportunities. We urge HHS to follow the letter of the law with respect to the ARPA-Rural funding, not willfully ignore Congress' express direction. Rural healthcare providers must remain at the forefront of our efforts to combat COVID-19 and need this assistance now," said Bennet and his colleagues.

Over the course of the pandemic, Congress appropriated $178 billion for the Provider Relief Fund (PRF) to ensure providers can continue to offer quality care during the COVID-19 pandemic. Only 6% of that funding has gone specifically to rural providers. The American Rescue Plan included a new $8.5 billion fund to support rural healthcare providers who incurred healthcare related expenses or experienced revenue losses attributable to COVID-19.

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