Tennessee officials trying to distribute the last of the state’s federal stimulus funding have set aside $230 million for hospitals and nursing homes. They’re reopening an application process for facilities to allow them to make a case for some of the money.
The Financial Stimulus Accountability Group (FSAG) includes lawmakers and members of the governor’s cabinet. They thought they would give money directly to hospitals that asked for it. But with the quick timeline, it was mostly the largest facilities requesting money, like Vanderbilt University Medical Center and Ballad Health.
“I just know when push comes to shove and people start applying, sometimes it’s the slickest proposal that gets the most attention,” Secretary of State Tre Hargett says.
So instead, the FSAG decided last week to give $230 million to the Tennessee Department of Health, which will re-start the application process in July and make awards in January 2023 (see general outline here). The state will consider construction projects to expand hospital capacity, technology upgrades or other needs. Nursing homes are encouraged to propose infection control projects. But the proposals must link back to the pandemic.
A department official says proposals that help small facilities in rural communities will get priority.
Last week, the FSAG did approve direct grants to three nonprofits — $6 million for Teach for America, $15 million for Habitat for Humanity and $12 million for Goodwill. The state also wants to put some of its final COVID stimulus funding into child care services but hasn’t figured out how just yet.
The FSAG will have roughly $300 million remaining after the most recent allocations.
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