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State officials outline ARPA hospital-review process, propose monitoring and funding tracks
Summary
DHS and DFNA officials described the Alvarez & Marsal assessment of eligible rural hospitals, said 26 hospitals were contacted and 18 applied for funds, and outlined proposed 'strategic' and 'transformative' tracks with monitoring; DFNA proposed a $5 million cap to distribute limited ARPA dollars more broadly.
State officials gave a detailed timeline and rationale for distributing American Rescue Plan Act (ARPA) funds to rural hospitals, describing a consulting review and a proposed funding approach that ties payments to measurable reform or transformation.
Christy Putnam (Department of Human Services) and Andy Babbit (Division of Finance and Administration) told the Public Health, Welfare and Labor Committee that DFNA selected Alvarez & Marsal through a special procurement in November 2022 and executed the contract in December 2022. Alvarez & Marsal conducted on-site evaluations in February–March 2023, draft reports were shared in May and the full consultant report was released in June. Officials said consultants reviewed…
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