Feds Formally Announce Financial COVID-19 Support for Private-Pay Assisted Living

September 1, 2020

Private-pay assisted living providers now have the ability to apply for funding under the Provider Relief Fund Phase 2 General Distribution allocation, the U.S. Department of Health and Human Services (HHS) announced Tuesday.

The announcement comes about two weeks after the federal agency told the American Seniors Housing Association (ASHA) during a call that relief would be coming very shortly, spurred by months of lobbying by ASHA and other industry groups.

Providers eligible for relief will receive 2% of their gross 2019 revenue allocation, which is in line with what other groups across the health care continuum, such as Medicaid providers and hospitals, have received.

ASHA and other industry groups including Argentum, LeadingAge and the American Health Care Association and National Center for Assisted Living (AHCA/NCAL) have called for federal relief throughout the coronavirus pandemic, citing the heavy costs incurred from testing, acquiring personal protective equipment (PPE) and higher labor costs to keep residents safe from the outbreak.

A recent survey from NCAL revealed that 26% of providers indicated that they could sustain operations at their current levels for another six months without assistance. Already, some smaller senior living providers that were financially stressed prior to the pandemic have begun to experience serious distress.

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