fah hospital policy blog

Perspectives on health policy affecting America’s hospitals and the patients we serve.

FAH Joins Broad Health Care Provider Coalition Urging Congress to Correct Taxation Issues in CARES Act

June 25, 2020 | FAH Policy Blog Team

Category: Legislation

FAH is part of a wide-ranging coalition of nearly 20 health care provider organizations that represent doctors, nurses, hospitals, dentists and more, that sent a letter to congressional leaders on June 25th asking for legislative action to fix a taxation penalty embedded in the CARES Act. Without congressional action, many providers will lose more than a fifth of the grant funds approved by Congress to sustain lifesaving care during the COVID-19 pandemic.

The groups are asking lawmakers to correct unintentional tax consequences of policies meant to provide vital funding to health care providers through the Public Health and Social Services Emergency Fund (also referred to as the Provider Relief Fund) and other programs as part of the nation’s response to the COVID-19 pandemic.

The letter states, “It is critical that the actions taken to support front-line caregivers and hospitals are not diluted by technical issues around the taxability of support funds. The current grant structure creates an inefficient process that provides grants, and then takes back 21 percent or more of the same grants for many of the organizations that need the assistance the most.”

The groups are asking that 1) Provider Relief Funds and similar funding provided in response to COVID-19 is not taxable; and 2) that entities receiving these funds maintain tax deductions attributable to these funds.

The other groups signing the letter include:

  • Ambulatory Surgery Center Association
  • American Academy of Family Physicians
  • American Academy of Physical Medicine and Rehabilitation
  • American Association for Homecare
  • American Association of Nurse Practitioners
  • American College of Physicians
  • American Dental Association
  • American Hospital Association
  • American Medical Association
  • American Nurses Association
  • American Occupational Therapy Association
  • American Optometric Association
  • American Physical Therapy Association
  • Federation of American Hospitals
  • National Association for Behavioral Healthcare
  • Premier Healthcare Alliance
  • Private Practice Section of the American Physical Therapy Association
  • U.S. Chamber of Commerce

The complete letter can be located HERE.