Connecticut’s hospitals receiving another $40M from state for fight against Covid

Connecticut”™s acute care hospitals are receiving another $40 million from the state to support their ongoing work responding to the Covid-19 pandemic.

The funding, which comes from the state”™s Coronavirus Relief Fund, will be distributed to non-governmental, short-term general hospitals that meet certain requirements based on applicable costs and expenses incurred as a result of the pandemic. It supplements the over $980 million direct federal funding received by the hospitals to date during the pandemic.

Within Fairfield County, Danbury Hospital will receive an estimated $3,258,853, followed by Stamford Hospital ($2,796,426); Norwalk Hospital ($2,772,223); Saint Vincent”™s Medical Center ($2,509,846); Bridgeport Hospital, including Milford ($855,905); and Greenwich Hospital ($753,594).

Yale New Haven Hospital is receiving the largest amount, estimated at $6,884,263.

“This funding recognizes the frontline role Connecticut”™s hospitals and their dedicated employees have played throughout this pandemic,” Gov. Ned Lamont said. “Our hospitals have needed to adapt to new protocols and infection control measures, while also ceasing elective procedures during the crest of the first wave of Covid-19, which had the effect of increasing costs and decreasing revenues, not to mention the physical, mental, and emotional toll this pandemic has taken on their staff.

“While these hospitals have received direct federal aid during this crisis, some of them and their affiliated practices are still experiencing financial hardship,” he added. “This $40 million will help those providers through this difficult time and recognizes the critical work and dedication they have demonstrated.”

“Connecticut hospitals and their staff have been the backbone of the state”™s response to the pandemic,” Jennifer Jackson, CEO of the Connecticut Hospital Association, said. “These extraordinary actions have also come at extraordinary expense, resulting in historic financial losses. The partnership with the state has been important to hospitals”™ ability to respond so effectively to the pandemic and Gov. Lamont”™s offer of much needed financial assistance will help keep our hospitals strong.”

As part of the agreement, the hospitals must report their eligible costs to the Department of Social Services. Once cost information has been received and reviewed, the agency will begin issuing reimbursements on a weekly, rolling basis. The hospitals may seek reimbursements only for federally permissible categories of documented costs related to Covid-19.

In addition, the hospitals will be required to allocate at least 15% of their Coronavirus Relief Fund payments to eligible physician groups or ambulatory surgical centers that are enrolled in Connecticut”™s Medicaid program and are formally affiliated with the hospital to target some of the reimbursement for Covid-related costs, specifically for providers who are supporting Connecticut residents, including Medicaid members, in continuing to access primary care and support with chronic conditions, both in person and via telehealth.

If the 15% presents a hardship (defined as FFY 2020 deficit for the hospital after all relief), a hospital may request waiver or modification of the threshold. On an ongoing basis, hospitals will be required to provide monthly reports to the Office of Policy and Management and Department of Social Services detailing receipt of other federal Covid-19 relief funds that were received directly by the hospital to avoid multiple reimbursement for the same expenses.

The table below provides an estimate of how much funding each of the state”™s hospitals will be allocated from the state”™s Coronavirus Relief Fund, with actual payments to be distributed only after the hospital has documented permissible Covid-related costs. The methodology allocates reimbursement in a way that recognizes the unique needs and Covid-related costs incurred by financially distressed hospitals.