AMGA Endorses Provider Loan Program Reform Effort; Accelerated and Advance Payments Provide Crucial Financial Support
Alexandria, VA – AMGA today endorsed H.R. 6837 and S. 3750, the Medicare Accelerated and Advance Payments Improvement Act, legislation that would restart and reform a Medicare loan program that offers financial support to healthcare providers that are facing critical revenue shortfalls because of the novel coronavirus (COVID-19).
AMGA members have cancelled elective procedures and encouraged their patients to stay at home, which has significantly reduced their revenues and threatened their ability to remain in business. To support their operations, many AMGA members turned to the Medicare Accelerated and Advance Payment Program, which offers loans to providers based on their revenue history. The Centers for Medicare & Medicaid Services abruptly closed the program to new entrants April 26, cutting off access to a needed source of funds. AMGA is pleased that Congress has recognized the need to continue and improve the program with the Medicare Accelerated and Advance Payments Improvement Act.
“AMGA members are fighting COVID-19 on two fronts,” said AMGA President and CEO Jerry Penso, M.D., M.B.A. “Defeating and containing the disease is one battle, and fighting off the dire financial impact of it is another. The legislation AMGA is endorsing today not only will help our members continue to care for their patients during this national crisis, but also will help ensure they can serve their communities into the future.”
The legislation restarts the program and modifies several key features. For example, providers would have a longer period to repay the loans at a lower interest rate. In addition, loans could be forgiven in cases of extreme hardship.
“AMGA members will not stop fighting this virus and caring for their patients,” Penso said. “We can’t reopen, because we never close. Programs like the APP have helped make that possible, and we urge Congress to pass this legislation as soon as possible.”
AMGA is a trade association leading the transformation of health care in America. Representing multispecialty medical groups and integrated systems of care, we advocate, educate, innovate, and empower our members to deliver the next level of high performance health. AMGA is the national voice promoting awareness of our members’ recognized excellence in the delivery of coordinated, high-quality, high-value care. More than 175,000 physicians practice in our member organizations, delivering care to one in three Americans.
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