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Big News for Rural Health Care: Some Public Hospitals Eligible for PPP Funding

April 24, 2020

Key Points:

-Some hospitals that are partially owned by state or local governments may be eligible to receive a loan from the Paycheck Protection Program (PPP).

-This will be a lifeline both for patients in rural areas and employees at those facilities.


After concerns were raised by members of Congress, including Ways and Means Republicans Adrian Smith and Jodey Arrington, the Treasury Department issued guidance today clarifying that some hospitals owned by governmental entities may be eligible for a loan from the PPP to keep their workers on the payroll.

Hospitals that are partially owned by state and local governments and receive less than half of their total funds from public sources— excluding Medicaid— are eligible for a PPP loan. A number of hospitals in rural areas had found themselves ineligible for PPP because they receive minimal funding from their county government. Today’s guidance will help these hospitals financially as they continue to fight COVID-19.

Want to read more on the fight against Coronavirus? Read our Coronavirus Bulletin here which contains our extensive FAQ about recent federal actions.

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