Lucas leads Okla. lawmakers who seek CARES Act clarifications for publicly owned hospitals

U.S. Rep. Frank Lucas (R-OK) recently led an Oklahoma congressional delegation in requesting that publicly owned hospitals be deemed eligible for financial assistance programs under the recently signed Coronavirus Aid, Relief, and Economic Security (CARES) Act.

“It is imperative that our rural hospitals are in no way prevented from accessing these critical programs, such as the Paycheck Protection Program (PPP), the Main Street Business Lending Program, and other critical financial assistance programs” authorized by the CARES Act, wrote Rep. Lucas and his colleagues in an April 17 letter sent to U.S. Treasury Secretary Steven Mnuchin, U.S. Small Business Administrator Jovita Carranza, and Federal Reserve Chairman Jerome Powell.

The lawmakers noted that in Oklahoma, 43 rural hospitals are established as a Public Trust under Oklahoma Statutes, with many not being a 501(c)(3) or they have both a 501(c)(3) and Public Trust designation, making them ineligible for CARES Act financial assistance.

“In addition, these hospitals often receive no funding from the city or county of which the hospital is owned,” wrote the group of lawmakers that also included U.S. Rep. Tom Cole (R-OK) and U.S. Sen. Jim Inhofe (R-OK). “These facilities are vital to rural Oklahoma, typically serving as both the largest employer and the only option for inpatient care in their communities.”

The members pointed out that lenders are unsure if these hospitals are eligible for the PPP, leading to stalled loan application processing.

“It is imperative that guidance be issued to clarify that these rural hospitals are eligible for PPP as soon as possible, and that upcoming lending programs are equipped to support our hospitals,” wrote Rep. Lucas and his colleagues.