Pennsylvania hospitals can now apply for loans through a $450 million aid package from the state to help facilities stay above water during the COVID-19 pandemic.
The Hospital Emergency Loan Program, an effort to provide short-term financial relief to hospitals, is expected to help ensure they have sufficient personnel, equipment and personal protective equipment.
Wolf announced the program Friday, saying it would give hospitals additional money until they can receive funding through the federal Coronavirus Aid Relief and Economic Security (CARES) Act that signed into law in late March.
The program is accepting applications from April 13 to April 20.
“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 frontlines of this pandemic.”
The loans top out at $10 million per hospital at an interest rate of .5% and will be dispersed by the Pennsylvania Infrastructure Investment Authority.
The loans were approved by Pennsylvania State Treasurer Joe Torsella, who said hospitals should be focused on saving lives, not worrying about holding out for federal relief funds that could take months to receive.
Once hospitals receive their funding through CARES, they will be able to close out the state’s loan with that federal money.