Bennet, Blackburn, Smith, Cramer Urge HHS to Extend the Provider Relief Fund Spending and Repayment Deadlines to Support Hospitals

As the Health Care Workforce Faces Staffing Shortages, the Senators Also Ask For More Flexibility For Hospitals To Use This Funding

Washington, D.C. – Today, U.S. Senators Michael Bennet (D-Colo.), Marsha Blackburn (R-Tenn.), Tina Smith (D-Minn.), and Kevin Cramer (R-N.D.) called on the Biden Administration to extend Provider Relief Fund (PRF) spending and repayment deadlines. In their letter to Health and Human Services (HHS) Secretary Xavier Becerra, Bennet and his colleagues also urged the administration to give hospitals the flexibility they need to use these funds to cover future or current costs, especially as the health care workforce continues to face staffing shortages.

“We urge you to use the full extent of your authority to provide greater flexibility on the permissible uses of Coronavirus Disease 2019 (COVID-19) relief funding and to extend the Provider Relief Fund (PRF) spending and repayment deadlines,” wrote the senators.

They continued: “After two years of non-stop demands on doctors, nurses, and other health workers, they are exhausted and we are seeing the number of hospital staffed beds declining, risking patient safety. In response to the resulting workforce shortages, hospitals have had to hire temporary nurses and respiratory therapists from staffing agencies, which can more than double labor costs. Hospitals need flexibility in their PRF payment use to better offset the cost of staffing.”

The Coronavirus Aid, Relief, and Economic Security (CARES) Act established the PRF in light of the Coronavirus Disease 2019 (COVID-19) pandemic to support hospital and provider response to the crisis. HHS allocated a total of $178 billion to providers, however if providers do not use their allocated funds by certain deadlines, they are required to return the money to HHS. In July 2021, Bennet and Cramer introduced the Provider Relief Fund Deadline Extension Act to delay PRF repayment. 

The text of the letter is available HERE and below. 

Dear Secretary Becerra:

We urge you to use the full extent of your authority to provide greater flexibility on the permissible uses of Coronavirus Disease 2019 (COVID-19) relief funding and to extend the Provider Relief Fund (PRF) spending and repayment deadlines.

After two years of non-stop demands on doctors, nurses, and other health workers, they are exhausted and we are seeing the number of hospital staffed beds declining, risking patient safety. In response to the resulting workforce shortages, hospitals have had to hire temporary nurses and respiratory therapists from staffing agencies, which can more than double labor costs.

Hospitals need flexibility in their PRF payment use to better offset the cost of staffing. For instance, existing salary caps are restricting some hospitals from accessing COVID-19 relief funding to cover workforce expenses. We ask that the salary cap be waived to accommodate the unanticipated workforce shortage costs due to COVID-19.

Further, providers need time and flexibility so that PRF payments can be used to cover costs due to any future COVID-19 variants. We ask that you extend the spending deadlines and reporting timelines so that PRF recipients do not face potential recoupment when they might need funds the most.

Thank you for your consideration of our request.

Sincerely,