Governor Wolf announces $450 million loan program for hospitals in financial difficulty

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There are more than 19,000 cases of COVID-19 in the state as of midnight today and the numbers are expected to continue to rise, underscoring an even greater need to ensure Pennsylvania hospitals are equipped to care for patients. patients and workers. To help, Governor Tom Wolf today announced a new loan program — the Hospital Emergency Loan Program, or HELP — that will provide short-term financial relief to hospitals in Pennsylvania as they prepare. to the growing increase in people infected with COVID-19 and the economic fallout from the national pandemic.

“The combination of rising costs and reduced revenues has hurt many hospitals financially,” Governor Wolf said. “We need to support our hospitals during this unprecedented time. When this pandemic ends, we will need hospitals to meet our regular medical needs, such as heart attacks and broken bones. This new loan program will bring immediate relief to our hospitals, which are on the front lines of this pandemic.

The $450 million loan package will be made available to Commonwealth hospitals to provide immediate financial support for working capital to ensure these facilities have staff, equipment and protective gear sufficient individual.

The funding was distributed by the Pennsylvania Infrastructure Investment Authority (PENNVEST) and will be administered by the Pennsylvania Department of Community and Economic Development through the Pennsylvania First (PA First) program. It was endorsed by Treasurer Joe Torsella, who played a crucial role in expediting this emergency funding.

“Pennsylvania hospitals should be focused on saving lives, not worrying about how to make ends meet until federal relief funds arrive months from now,” the state treasurer said. Pennsylvania, Joe Torsella, whose office must approve any investment made by the PENNVEST Board of Directors. “I am proud to endorse this prudent investment which will provide immediate, inexpensive and direct funding to enable hospitals to adequately staff their floors, purchase treatment supplies and protective equipment, and prepare with success in the influx of COVID-19 patients in the coming weeks. I commend the PENNVEST Board of Directors for reaching this milestone, and Governor Wolf for his leadership and continued commitment to protecting Pennsylvanians throughout this crisis.

Pennsylvania health care facilities licensed as hospitals by the Pennsylvania Department of Health under the Health Care Facilities Act of 1979 that are eligible to receive federal grant funding through the CARES Act are eligible for HELP. The maximum loan amount is $10 million per hospital at an interest rate of 0.5%.

Applications will be available on the DCED website from 10:00 a.m. from April 13 to April 20. Expenses must be incurred between March 1 and September 1.

HELP will allow hospitals to take responsive action now until funding through the federal CARES (Coronavirus Aid, Relief, and Economic Security Act), which was signed into law on March 27, 2020, is fully dispersed, in order to alleviate the financial pressure. of the pandemic and facilitate the transition to the regular operation of health care.

Expenditures allowed under HELP will mirror those under the CARES Act, allowing hospitals to close their loan with CARES funding once it is received.

See this information in Spanish.

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