Loan program will aid Pa. hospitals
By JEFF STITT
jstitt@yourmvi.com
A new state loan program “will provide critical funding to hospitals during the COVID-19 health emergency,” according to state Sen. Camera Bartolotta.
The Republican from Carroll Township announced Friday that eligible hospitals can apply for up to $10 million in short-term funding to deal with the surge in patients.
Bartolotta said The Pennsylvania Infrastructure Investment Authority, also known as PENNVEST, approved a $450 million emergency loan program Friday to assist financially distressed hospitals as they work to address the COVID-19 outbreak.
As the state’s number of COVID-19 cases crept toward 20,000, Gov. Tom Wolf said that highlights an even greater need to ensure that Pennsylvania’s hospitals are equipped to care for patients and workers.
“The combination of increased costs and reduced revenue has hurt many hospitals financially,” Wolf said. “We must support our hospitals through this unprecedented time.
“When this pandemic finally ends, we’re going to need hospitals to care for our regular medical needs, like heart attacks and broken bones. This new loan program will provide immediate relief to our hospitals, which are on the front lines of this pandemic.”
Through the PENNVEST program, hospitals will be eligible to apply for low-interest loans under the Hospital Emergency Loan Program (HELP). The loan is intended to provide short-term financial relief for hospitals until federal Coronavirus Aid Relief and Economic Security funding is available, Bartolotta said.
The HELP application period is expected to run from 10 a.m. Monday through April 20, and hospitals should submit their requests through the Department of Community & Economic Development’s Electronic Single Application for Assistance on the DCED website.
Pennsylvania health care facilities licensed as hospitals by the 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 loan comes with an interest rate of 0.5%.
Applications will be evaluated based on specific criteria that includes size and location of the hospital, its financial need and the impact of COVID-19 on its operations, according to the state senator.
State Treasurer Joe Torsella, who approved the emergency funding, said it can be used by hospitals “to sufficiently staff their floors, purchase treatment supplies and protective equipment, and successfully prepare for the surge of COVID-19 patients in the coming weeks.”
