Envision secured $60M+ in federal emergency funding

Companies owned by Nashville, Tenn.-based Envision Healthcare's parent company, KKR, secured more than $60 million in federal funding through HHS, Bloomberg reports.

What you should know:

1. Subsidiaries of companies owned by private equity firm KKR had almost 300 applications approved for more than $60 million in funding through HHS' Advance Payments Program and the Accelerated Payments Program, which were both expanded through the Coronavirus Aid, Relief and Economic Security Act.

2. The expansion was designed to help healthcare practices cope with the pandemic. The funding was awarded to providers who were in danger of losing their business because of elective surgery bans and to assist facilities treating COVID-19 patients.

3. The funding was awarded as a 0 percent interest loan for seven months to a year, which will jump to a 10.25 percent interest rate if not repaid during that time.

4. CMS Administrator Seema Verma said the agency didn't ask applicants about their ownership structure. Ms. Verma said to Bloomberg: "We didn't look into ownership, what we look into is are they Medicare-enrolled providers. That is not information that the agency has historically looked into in a situation where there is a disaster or an emergency."

5. The expanded law had no restrictions on PE companies seeking money from HHS, but businesses with more than 500 employees were excluded from the similar Paycheck Protection Program.

6. HHS awarded the funds to KKR-affiliated entities like River Drive Surgery Center in Elmwood Park, N.J., Bend (Ore.) Surgery Center and Surgery Center of Allentown (Pa.)

7. KKR spokesperson Kristi Huller told Bloomberg the loans were used for "front-line providers, including Envision." She said the company planned to pay back the money within 120 days of issuance.

8. KKR has more than $58 billion in investable capital to date.

More articles on ASCs:
The 'new normal' for ASCs: 16 admins on how the pandemic will change the field forever
Dr. Thomas Vikoren: Same-day TJR 'made all the more important' by COVID-19
Indiana orthopedic practice with surgery center to open

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