Racial bias found in formula for distributing Covid-19 hospital aid

The formula that the federal government used to distribute funds to hospitals through the CARES Act has shortchanged those that serve largely Black populations, according to new research. The formula allocated chunks of a $175 billion relief package based on a hospital's past revenue from Medicare and not where the most Covid-19 cases currently were. The result: Large hospitals with many resources ended up with more funding, leaving smaller hospitals that serve Black patients in the lurch. Although historically Black counties received $126 more in funding per resident than other counties, that extra funding was not enough to offset the high demand in the majority Black counties. “Reallocating that funding according to where it’s most needed would be more equitable in the sense that it would get more money to Black counties,"study co-author Ziad Obermeyer tells STAT's Casey Ross.