By Bill Borden
Within the $2.2 trillion Coronavirus Aid Relief, and Economic Security (CARES) Act’s program to provide relief to businesses, individuals and the economy, roughly $130 billion is targeted to hospitals and other eligible providers to support their efforts to combat the COVID-19 pandemic.
In addition, several provisions enact changes to improve patient access to care, expand the healthcare workforce, and extend additional flexibilities to healthcare providers on the front lines of treating patients.
“The law is far-reaching and aims to increase the supply of medical equipment, provide needed funding for treatment and vaccine development, improve access to care and diagnostics, and enhance overall preparedness for COVID-19,” said S. Lawrence Kocot, principal and national leader of KPMG’s Center for Healthcare Regulatory Insight. “This is in addition to helping workers and some of the businesses hardest hit by ‘social distancing’ efforts to contain the spread of the disease.”
In addition to hundreds of billions of dollars in economic relief to businesses and workers affected by COVID-19, the law does, among other things, the following:
“The CARES Act also provides healthcare providers with accelerated payments, and provides all organizations (taxable and tax-exempt) with deferrals and other forms of tax relief intended to increase cash flow and encourage employee retention during this time of economic disruption,” said Monica Coakley, KPMG’s national tax leader for healthcare.
To speak with Kocot or Coakley about regulatory or tax matters tied to healthcare, please contact Bill Borden from KPMG’s Corporate Communications Department.