House Investigates Misallocation of Billions in COVID “Relief” by HHS

Just the News: House Republicans on Tuesday announced an investigation into allegations the Health and Human Services Department misallocated COVID-19 relief funds intended to help low-income hospitals.

The probe is being led by House Oversight committee Chairman James Comer.

🚨Today, I launched an investigation into @HHSGov's failure to provide COVID relief funds to low-income hospitals.

HHS funneled billions of taxpayer dollars to highly profitable hospitals in wealthy areas while rural hospitals battled bankruptcy. @WSJhttps://t.co/X0KNCxtWIq

— Rep. James Comer (@RepJamesComer) April 11, 2023

In a letter to agency Secretary Xavier Becerra, Comer and fellow GOP committee member Rep. Nick Langworthy allege HHS “funneled billions of taxpayer dollars to highly profitable hospitals in wealthy areas while rural hospitals battled bankruptcy as they strived to provide high-quality care.”

The lawmakers, in the letter, requested all documents and communications related to agency’s decision-making process for which hospitals and providers received the taxpayer dollars.

NEW: In a letter to HHS Secretary Becerra, @GOPoversight says it is investigating a December @WSJ report that a federally-stewarded ~$178 billion Covid-19 relief fund for low-income hospitals was disproportionately awarded to more profitable institutions. pic.twitter.com/lgSmTV96KA

— Benjamin S. Weiss (@BenjaminSWeiss) April 11, 2023

They also cited reports that nearly $17 billion of pandemic relief funds went to hospitals
with reported profits of $53 billion-plus, while $35 billion went to hospitals that reported a loss of almost $130 billion.

“It is crucial that we understand how the Department of Health and Human Services
distributed these funds to hospitals that did not need it while hospitals in need received minimal benefit,” the lawmakers also wrote.