Biden Administration Spent Billions of Hospital Covid-19 Funding on Vaccines and Therapeutics

January 27, 2022

In a move mirroring the Trump administration, the Biden Administration diverted almost $7 billion that was initially allocated to hospitals and clinics to purchase COVID-19 vaccines and therapeutics. The money was originally part of the Provider Relief Fund to help providers cover COVID-19 costs. However, that fund has been tapped out, and providers haven’t been able to submit requests for expenses beyond March 2021, months before the Delta and Omicron surges that wreaked havoc in the healthcare system.

According to Rachel Cohrs of STAT, “With the new $7 billion shift, which has not been previously reported, the diversion to drugmakers totals nearly $17 billion, or roughly 10% of the overall money Congress allotted for the fund for hospitals and physician practices. Congress set aside that money to help health care providers pay for pandemic-related expenses including staffing, personal protective equipment, care for uninsured patients, and vaccine distribution.”