MDH Releases RFP for $150 Million in Emergency Response Funding

Posted on April 14, 2020 by Jeff Bostic

The Minnesota Department of Health (MDH) yesterday posted an RFP for $150 million in funding for providers to prepare for and respond to the outbreak of COVID-19. Members are strongly encouraged to submit their applications as soon as possible. 

In a highly unusual move for the $150 million in grants that MDH is calling Health Care Response Grants, MDH has not established an official application deadline. MDH is asking that providers submit their applications as soon as possible.  As with the previous grants and even though more money is available this time, MDH anticipates that demand will exceed the supply of funds but they also want to make grants quickly so the money gets to where it is needed soon.

Providers who applied in the first round, whether they received a grant or not, are eligible to apply again for these funds. These grants are a key emergency funding source for assisted living providers, at least to this point, so they in particular should look at applying for these funds. 

Nursing homes recently received federal funding with more expected, and the state is working on an emergency assistance program targeted to their cost increases. While nursing homes are eligible to apply for these grants, they are not likely to be selected for funding unless fit is for something that is not funded through another assistance program (such as capital investments).

The Health Care Response Grants are designed to pay many of the costs associated with responding to COVID-19, including staff training, increased staffing and wages, and additional screening staff, cleaning costs, and personal protective equipment. The Legislature did place some restrictions on the funds, including not claiming lost revenue, sick time for staff or staff food costs, so members should be sure not to include those on their applications.

The selection critieria include being in a region with a lot of COVID-19 cases, urgent need for additional resources, and organizations who lack resources to respond.   

Members are encouraged to review the RFP and then move quickly to complete and return the application for these grant funds.

The Legislature appropriated $200 million for COVID-19 preparation and response by health care providers. The first $50 million was awarded last week to numerous health care providers including 140 assisted living providers.