Lawmakers direct almost all of remaining reserved ARPA funds to four more rural Arkansas hospitals

Arkansas lawmakers have directed federal COVID-19 relief funds to 17 of the 18 rural hospitals deemed eligible for the aid, pending final approval of nearly $13.5 million for four facilities

By: Tess Vrbin
Arkansas Advocate

Arkansas lawmakers have directed federal COVID-19 relief funds to 17 of the 18 rural hospitals deemed eligible for the aid, pending final approval of nearly $13.5 million for four facilities.

The Arkansas Legislative Council’s Performance Evaluation and Expenditure Review subcommittee approved the following awards from the American Rescue Plan Act (ARPA) of 2021 on Tuesday with no dissent:

• $2,737,165 to Mena Regional Health System
• $3,441,839 to Bradley County Medical Center in Warren
• $3,441,839 to South Mississippi County Regional Medical Center in Osceola
• $3,832,031 to Great River Medical Center in Blytheville

ARPA funds are aimed at covering costs incurred during the pandemic. Arkansas received an initial pot of more than $1.5 billion for lawmakers to distribute, and $60 million was set aside in August 2022 as emergency relief for struggling rural hospitals.

With the full Legislative Council’s approval Friday, the state will have distributed nearly all of the $60 million, with less than half a million remaining.

The state hired the Alvarez & Marsal consulting firm to assess rural hospitals’ eligibility for ARPA funds and help lawmakers decide how to prioritize the funding requests. The firm evaluated 18 hospitals, and all but Ozarks Community Hospital in Gravette have received financial aid since September 2022.

All four hospitals approved for funding Tuesday cited struggles to recruit and retain staff and the high cost of paying for traveling nurses as reasons for seeking federal aid, according to documents submitted to lawmakers outlining the hospitals’ strengths, challenges and financial situations.

Read more here.