Garbarino: New York State hospitals to get more than $2B in late COVID funds

WASHINGTON — New York State hospital systems will finally start to receive more than $2 billion in significantly overdue federal reimbursements for COVID-19 disaster expenses, House Homeland Security Committee Chairman Andrew Garbarino announced Wednesday.

The Federal Emergency Management Agency (FEMA) is shaking loose the money after Garbarino (R-Bayport) last month wrote to Homeland Security Department Secretary Kristi Noem, warning that his panel was opening an investigation into delays in the hospital payments.

"Following my oversight efforts, I am thankful for Secretary Noem's response to my request and am grateful for President Trump and FEMA Office of Response and Recovery Associate Administrator Gregg Phillips’ help in beginning the delivery of much-needed and long-promised COVID-19 pandemic relief to states," Garbarino said in a statement Wednesday

There was no immediate response from officials at FEMA, which is expected to publicly announce the disbursements to the hospitals on Friday.

The reimbursements were designed to help hospitals pay for the significant added financial burdens they incurred in expanding their operations and staff during the pandemic, including critical equipment like ventilators and supplies of personal protective equipment.

Many of those actions were taken at the request of state or local governments.

Greater New York Hospital Association President Kenneth E. Raske cheered the news. "After years of delays — and thanks to the dogged efforts of House Homeland Security Chairman Andrew Garbarino — the process for our hospitals to finally receive their long overdue FEMA funds is underway." Raske added. 

"Severely delinquent" was how Garbarino had described the slow FEMA payments in his Jan. 21 letter to Noem. The precise dollar figure for those tardy payments to hospitals nationwide is not clear.

But at least $2 billion is believed owed to at least a dozen health systems in New York State alone, including on Long Island, and some of those hospitals have begun to receive payments. Details of the specific hospitals owed payments and how much have not been released yet.

Garbarino, in his letter to Noem last month, said his committee’s understanding was that many of the owed reimbursements to the New York health systems had already gone through every required check and balance, yet were still sitting on her desk awaiting final approval.

Among the complaints, he said, were that FEMA has changed its process to re-review all COVID-19 claims — including some that had already been approved — and Noem herself was personally reviewing claims over $100,000. Some of those rule changes came after some claims had been submitted.

Garbarino warned Noem in his letter: "In the interests of the nation’s hospitals and public health infrastructure, claims which have already been reviewed and approved by FEMA must be swiftly obligated and disbursed and not subject to additional and potentially duplicative reviews instituted by the department."

FEMA’s decision to disburse the COVID-19 reimbursement claims, Garbarino said Wednesday, "will help restore the resilience of our nation’s health infrastructure and ensure our communities are prepared to face the emergencies of tomorrow, rather than being burdened by those of yesterday."

"I look forward to continued communication with the department to ensure the expeditious review of remaining reimbursement claims that will further support our nation’s hospitals," he said.