Collins, King Announce More Than $52 Million for Maine Safety Net Hospitals Amid COVID-19

Washington, D.C. – U.S. Senators Susan Collins and Angus King announced that safety net hospitals in Maine have been awarded a total of $52,175,271 to support their efforts to combat the COVID-19 pandemic.  Safety net hospitals treat a disproportionate number of Medicaid beneficiaries, providing large amounts of uncompensated care, and tend to operate on thin profit margins. 

“Safety net hospital workers are the backbone of Maine’s health care system, providing cost-effective primary and preventive care that is crucial to the wellbeing of low-income individuals and families throughout our state,” said Senator Collins and King in a joint statement.  “We welcome this investment, which will help to ensure that safety net hospitals can continue to care for patients amid the COVID-19 outbreak.”

Qualifying hospitals will have:

·         A Medicare Disproportionate Payment Percentage (DPP) of 20.2 percent or greater;

·         Average Uncompensated Care per bed of $25,000 or more. For example, a hospital with 100 beds would need to provide $2,500,000 in Uncompensated Care in a year to meet this requirement;

·         Profitability of 3 percent or less, as reported to CMS in its most recently filed Cost Report.

·         Recipients will receive a minimum distribution of $5 million and a maximum distribution of $50 million.

This funding was awarded through the U.S. Department of Health and Human Services’ (HHS) Provider Relief Fund in the CARES Act and will be sent directly to qualifying hospitals via direct deposit.  The Provider Relief Fund aids American families, workers, and the brave healthcare providers in the battle against the COVID-19 pandemic. 

Through the CARES Act and the Paycheck Protection Program and Health Care Enhancement Act, HHS allocated $175 billion in relief funds to hospitals and other healthcare providers, including those disproportionately impacted by this pandemic.