Tanner Returns CARES Act Funds to HHS
Wednesday, June 3, 2020
Tanner Health System has returned all $62,630,251.50 in federal CARES Act high-impact provider relief funds disbursed to the system last month.
The funds, disbursed to Tanner in error, were based on hospital admissions for COVID-19 patients.
CARES Act high-impact provider relief funds were established by Congress to support healthcare organizations laboring under the cost of caring for COVID-19 patients while also coping with lost revenue from discontinuing almost all elective services.
In April, the health system reported to the U.S. Department of Health and Human Services (HHS) the number of COVID-19 patients who had been admitted to Tanner hospitals, aware that it did not meet the threshold necessary for CARES Act high-impact provider relief funds.
On May 7, the health system received the more than $62.6 million in CARES Act high-impact provider relief funds as part of a fast-paced distribution from HHS. The figure included $35,224,580 to
Tanner Medical Center/Carrollton and $27,405,671 to
Tanner Medical Center/Villa Rica.
Tanner was not notified that it had qualified for the funds nor that the funds were being dispersed.
Immediately upon learning of the CARES Act high-impact provider relief funds disbursement, the health system’s financial team realized that the amount was significantly more than anticipated, launching an internal investigation and reaching out to HHS — as well as state and professional organizations — for clarification on the calculation used to determine funding.
Tanner has used none of the CARES Act high-impact provider relief funds, holding the funds until clarification was received from HHS. The funds were returned June 2. The health system intends to apply for any federal relief funds for which it is eligible.