(Bloomberg) — HCA Healthcare Inc. plans to return $6 billion in emergency virus-relief aid received earlier this year, after the immediate business squeeze caused by the pandemic waned for the largest publicly traded U.S. hospital operator.
The company will return its federal relief funds, which include $4.4 billion in accelerated Medicare payments and a $1.6 billion distribution from the Provider Relief Fund. Under the latter program, Congress allocated $175 billion for hospitals and other medical providers, largely in grants that don’t need to be repaid.
The relief grants allocated under the CARES Act were initially sent to help medical providers deal with lost revenue and additional expenses related to Covid. In guidance last month, the government said lost revenue would be calculated as a drop in year-over-year net operating income.