KPMG report: Healthcare provisions of CARES Act

KPMG report: Healthcare provisions of CARES Act

The “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) (Pub. L. No. 116-136), signed into law on March 27, 2020, provides healthcare providers with accelerated payments, and provides all organizations—both taxable and tax-exempt—with deferrals and other forms of tax relief intended to increase cash flow and encourage employee retention during this time of economic disruption.

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In addition to economic relief provided to businesses and workers affected by COVID-19, the CARES Act also:

  • Provides $130 billion to healthcare providers to respond to the pandemic, including $100 billion in eligible funding for COVID-19 related expenses and lost revenue
  • Provides hospitals treating Medicare patients for COVID‑19 with a 20% payment increase for services
  • Eases telehealth restrictions
  • Delays Medicaid disproportionate share hospital reductions to December 1, 2020
  • Extends funding for a number of healthcare programs, including community health centers, diabetes programs, and low-income programs
  • Funds replenishment and expansion of the National Stockpile, including for items such as personal protective equipment for healthcare workers
  • Expands the Medicare Accelerated and Advance Payments Program


Read a KPMG report [PDF 105 KB] that discusses implications of the CARES Act for healthcare providers


For more information, contact a tax professional with KPMG’s Washington National Tax practice:

Ruth Madrigal | +1 202 533 8817 | ruthmadrigal@kpmg.com

Preston Quesenberry | +1 202 533 3985 | pquesenberry@kpmg.com 

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