LITTLE ROCK — A state panel Wednesday endorsed the Department of Human Services’ request for $50 million in federal coronavirus relief money for hospital and nursing-home costs related to covid-19, after Gov. Asa Hutchinson signaled his support for the request.
The 15-member Arkansas Coronavirus Aid, Relief, and Economic Security Act steering committee — appointed by the governor to recommend how best to use the state’s $1.25 billion in federal coronavirus relief funds — recommended in a voice vote approval of the department’s request for $30 million for hospitals and $20 million for nursing homes.
“A big issue, and I think this is the purpose of the governor’s request, is to use the money to help recruit staff, especially some of the hospitals where staffing needs are very difficult, and some of the staff has been … poached by [facilities] outside the state, who are offering significant money to come and work,” said state Surgeon General Greg Bledsoe.
“I think it is to help compete against that,” he said.
Hutchinson said Wednesday he supports the Human Services Department’s request for $50 million for hospitals and nursing homes because of the current surge in covid-19 cases.
“As you are aware, it is vital to maintain the resources and capacity for our health care facilities to address the increased volume of covid-19 cases in our state,” he said.
In his letter, Hutchinson also asked the steering committee “to set aside the $50 million that was previously recommended for the unemployment insurance trust fund so that it can be considered at a later date.”
The CARES Act committee consists of nine Hutchinson administration officials and six state lawmakers.
On Nov. 10, the committee endorsed the state Department of Commerce’s request for $50 million in relief funds to mitigate unemployment insurance rate increases for employers.
The $50 million, coupled with $165 million in relief funds previously transferred to the unemployment insurance trust fund, is aimed at preventing employers from being charged higher rates for unemployment insurance next year because of more than $200 million in claims from the second quarter of this year, according to department officials.
Department of Commerce Secretary Mike Preston told the committee Wednesday “the $50 million would have completely wiped it out to allow us to effectively issue a noncharge for the second quarter of 2020.”
The department’s request to the Arkansas Legislative Council to spend the $50 million in coronavirus relief “was held” up on Nov. 20, after clearing a council subcommittee, because “we were seeing the increase in cases and a significant increase in hospitalizations … so it was decided at that time to just hold for now on that $50 million” in anticipation of a request for $50 million from the Department of Human Services, he said.
Noting Department of Finance and Administration Secretary Larry Walther expects to have roughly $54 million in leftover federal relief money, Preston said “that might solve our issue right there, that we can use that for the $50 million to make up the difference in the trust fund.”
“This one is where if we can get down to the very end of the wire and [other state agencies] don’t have the ability to spend the funds, [and] funds come back in at the last minute, we can make the transfer at the very end of the month, at the end of this year, into the trust fund and that will satisfy what we need,” he said.
Sen. Missy Irvin, R-Mountain View, said, “I really want to make sure that we in the Legislature — if we can’t use CARES money for that — that we have an alternative plan, administratively, and through the [legislative] session to either adjust that or do something to make that adjustment.”
Hutchinson said Wednesday in a statement “I will work with the General Assembly to determine the best way to keep the unemployment trust fund healthy.
“There are a number of options and we will make decisions in the coming weeks to determine the best course of action,” he said in response to questions about whether he would issue an executive order or ask state lawmakers to pass legislation in next year’s regular session to prevent increased rates to employers for unemployment insurance.
In its written request for the $50 million in federal relief money, the Department of Human Services said the governor, the CARES committee and the Legislature have responded to the needs of hospitals by authorizing more than $180 million directly for their staffs and other costs associated with covid-19, and authorizing more than $120 million to nursing homes.
“However, the covid-19 crisis has surged in recent weeks, and hospitals and nursing facilities are struggling to maintain capacity to treat patients, and protect the public and their staffs,” the department said. “The surge has disrupted the hospitals’ and nursing facilities’ abilities to maintain qualified staff at all levels within their organizations.”
The $50 million is critical to hospitals and nursing homes maintaining their capacity to care for patients, and to recover costs to prevent further spread of covid-19, the Department of Human Services said in its request.
The money may be used for costs related to covid-19 between July 1 and Dec. 30 that have not been reimbursed, and are determined by the hospital or nursing home to be essential to maintain staffing to meet health and safety requirements, the department said. The money also could be used for staffing and infrastructure needs because of a covid-19 surge or associated with development of new models for delivering patient care, according to the department.
The Department of Human Services said it will establish an allotment for each eligible hospital and nursing home based on a formula and distribute money to those providers by Dec. 11. To be eligible for the money, the providers must be enrolled in the Arkansas’ Medicaid program as of March 1 of this year and be accepting Medicaid beneficiaries.
Also, Sen. Will Bond, D-Little Rock, urged the committee to take another look at his plan to tap federal corona-virus relief money for school teachers and staff members that could cost from $33.5 million to $54 million. Under the $33.5 million plan, each teacher and staff member would be paid $500. With the $54 million plan, each teacher would receive $1,000 and each staff member $500.
“I think the committee owes the teachers and staff out there who are on the front lines in a different capacity than health care workers,” he said. “I understand the health care workers are right on the front lines and are taking the brunt of this.”
With Bond dissenting, the committee later endorsed the state Department of Labor and Licensing’s request for $450,000 in federal relief funds to provide a production-ready infrastructure for a multiagency licensing platform based on certain conditions.