Manatt represents NYC in landmark loan fund for safety net hospitals battling COVID-19 pandemic

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A Manatt team led by Manatt Health Leader Bill Bernstein and Manatt Financial Services Partner Neil Faden and including Manatt Health Senior Director Christopher Cantrell represented New York City in structuring and negotiating the creation of ‘a landmark loan fund to support safety net hospitals across city in their continued response to the COVID-19 pandemic. The NYC COVID-19 Hospital Loan Fund will be managed by the New York City Economic Development Corporation (NYCEDC), which has borrowed money from Goldman Sachs to provide up to $ 45.5 million in loans to hospitals in the net. security.

Primarily serving low-income residents and communities of color who have been disproportionately affected by the pandemic, safety net hospitals continue to be on the front lines of the fight against COVID-19 and bear the brunt of the impacts. COVID-related hospitalizations. With patients primarily dependent on Medicare, Medicaid, or uninsured, safety net hospitals are essential to the city’s health care infrastructure, but operate on tight margins and have limited access to capital. .

NYC COVID-19 Hospital Loan Fund Responds to Urgent Need for Safety Net Hospitals for More Capital and Increased Cash Flow by Providing Funding for Additional Staff; PPE; employee testing; personnel costs — including salaries, incentives, and child care — and immunization efforts. Loans are offered to safety net hospitals at cost price through a simple application and approval process that makes the money quickly available. The loans are unsecured and are designed to allow hospitals to use relief funds from FEMA and suppliers as sources of repayment.

This fund is the latest initiative in the city’s continued support for safety net hospitals. At the start of the pandemic, the city convened a task force of safety net hospitals to guide efforts in response to COVID-19 and provided these critical institutions with access to equipment, technical assistance, support to financial planning, pooled purchasing arrangements to cope with additional staffing and funding for expanded community outreach and testing.

In addition to NYCEDC and Goldman Sachs, New York City Emergency Management and Community Preservation Corporation are also part of the partnership to provide special funding to safety net hospitals. This funding is essential to ensure that safety net hospitals can continue to provide services to communities hardest hit by the COVID-19 pandemic.

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