MedPAC will recommend site-neutral payments, but not for strokes

The U.S. Department of Health and Human Services recently began distributing $7.5 billion in American Rescue Plan (ARP) payments to providers who serve Medicaid, Medicare and other beneficiaries in rural areas. Among those receiving funds are home care providers.

“Healthcare providers in rural communities have been hit hard by the COVID-19 pandemic, and they continue to experience significant financial hardships,” HHS Secretary Xavier Becerra said in a statement. “The infusion of these funds will be critical to ensuring rural communities maintain access to high-quality healthcare and addressing urgent needs like workforce recruitment and retention.”

The funding will help providers stay in business, tackle workforce challenges, and make up for pandemic-related lost revenues and increased expenses, HHS said. Among the ways providers can use the funds are for salaries, recruitment or retention; supplies; equipment; and other expenses related to prevent, prepare for or respond to COVID-19. The average payment is approximately $170,700, with payments ranging from $500 to about $43 million, HHS said. More than 40,000 providers will receive ARP Rural payments.