Hospitals approved for American Rescue Plan aid

Some Arkansas hospitals are on life support.

What happened: A governor-appointed steering committee recommended $60 million of the state's American Rescue Plan Act (ARPA) money be used to help hospitals on the verge of demise remain open for business.

• The positive vote from the committee came Wednesday along with 10 other health care-related projects, valued at a combined $114 million.

Why it matters: Rising costs and labor shortages have put some Arkansas hospitals in a severe financial crunch. Several hospitals, especially those serving rural communities, are in immediate danger of closure, according to the Department of Human Services' request to the steering committee.

• The document didn't provide details about which or how many hospitals are in need.

Details: To be eligible for emergency funds from DHS, the agency will require a hospital show it is in "immediate jeopardy" of closure by having less than 90 days of cash on hand and insufficient assets to cover its liabilities.

• Within 90 days of receiving the money, the hospital will have to provide DHS with a detailed plan for financial sustainability.
• There will be a $10 million cap for each hospital.

By the numbers: Other projects approved by the steering committee include:

• $10 million to support up to 52 rural hospitals as part of the Arkansas Rural Health Partnership, mostly in the southeastern part of the state.
• $5 million to provide training of teams working in the state's behavioral health agencies to benefit children and adults with mental health needs.
• $9.6 million will help build a 90-bed facility in Little Rock for Women & Children First, the state's largest domestic violence shelter.

Seven of the projects approved, valued at a combined $29.8 million, were for colleges and technical schools across the state.

• The money will help pay for construction projects or ventilation upgrades to facilities that either impact the health of the students or bolster existing health care study programs.

Context: It's the second time in a month the committee met. Previously, the group approved $300 million for water projects and $9 million to pay for additional state prosecutors and public defenders.

• In all, the group approved spending more than $423 million from the state's total of $1.57 billion in ARPA funds in August.
• The money must be spent on one of eight criteria, including the public health response to COVID-19 and addressing health care needs exacerbated by the pandemic.

What we're watching: Arkansas' ARPA money left for allocation is roughly $452 million.