$40 Million Allocated for Connecticut’s Hospitals to Support Ongoing COVID-19 Response Efforts

Governor Ned Lamont today announced that his administration will be delivering an additional $40 million to Connecticut’s acute care hospitals 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.

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 percent 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 percent 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 following table 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-19 related costs. This methodology allocates reimbursement in a way that recognizes the unique needs and COVID-related costs incurred by financially distressed hospitals.