Feds extend deadline for provider relief fund use

Two Iowa congressional representatives were among those calling for providing health care providers additional time and flexibility to use financial assistance provided by Congress.

Earlier this week, the U.S. Department of Health and Human Services extended the original deadline for hospitals and health care providers to use their portions of the $178 billion in provider relief funds approved by Congress last year. Previously, the federal government required expenditure of all payments by June 30th--regardless of when the money was received. Now, recipients have at least a full year to use the award, and more time to complete reporting requirements. Iowa Congresswomen Cindy Axne and Mariannette Miller-Meeks joined other colleagues in pushing for the extension. Speaking on KMA's "Morning Line" program Thursday morning, Axne says health care providers in both their districts were up against the deadline to use the funds.

"There just wasn't enough time in many cases to use this money appropriately for the resources needed for our health care providers," said Axne. "And, extending that ability to use that appropriated funding will allow those providers to continue to support our communities as we move through COVID, and address the issues of revenue loss, as well, that our health care providers saw, in particular early on, when they had to shut down in many cases from elected procedures, etc."

The West Des Moines Democrat says Iowa providers were at a particular disadvantage, since they received the money later than those in other parts of the country where COVID-19 hit sooner.

"We certainly saw the coast get COVID long before we did," said Axne. "As funding went out, it was really more helpful for those states seeing the biggest impact--like we were seeing in New York City. Iowa, we weren't up against that yet. It came a little bit later, and then continued to grow while some other states were declining. So, we had less opportunity to use the money earlier."

Axne says extending the deadline was important to facilities in her region.

"We want to keep those critical access hospitals in our rural communities with the resources that they need, and our health care providers with the resource they need," said Axne, "so that they can continue to operate, and serve Montgomery County, Taylor County, Page County and every county. So, that's why it was important to get this through."