
Public Healthcare Operators: Valuation Trends Summary
Rachel Linch
June 21, 2022
March 24, 2020
On March 19, the President signed H.R. 6201, the Families First Coronavirus Response Act (“2nd Act”). The bill includes a set of temporary paid leave mandates and employer reimbursement provisions, as well as funding for free coronavirus testing, food nutrition security, and specific COVID-19 related employment provisions.
The 2nd Act included nutrition assistance and additional funding for existing programs.
The 2nd Act (Section 4101) began the process of addressing State unemployment benefits funding concerns. It provides money for emergency grants to states for processing and paying unemployment insurance (“UI”) benefits.
The 2nd Act (Division G, Section 101) provides free testing for all Americans for COVID-19, regardless of insurance status or ability to pay. Private and public insurers (Medicare, Medicaid, CHIP, and other federal health programs) must cover COVID-19 diagnostic testing, including the cost of a provider, urgent care center, and emergency room visits to administer the test.
Specific funding has been set aside for COVID-19 testing for patients enrolled with TRICARE / Veterans Association / Indian Health Services and federal workers.
The Act requires certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19.
Emergency Paid Sick Leave (Section 5102)
Two Weeks Paid Leave (COVID-19 illness): Law requires employers with less than 500 employees and public employers to provide two weeks of paid sick leave, paid at the employee’s regular rate up to $511 per day where the employee is quarantined (pursuant to Federal, State, or local government order or advice of a healthcare provider), experiencing COVID-19 symptoms and seeking a medical diagnosis.
Two Weeks Paid Leave (Caring for Individual w/COVID-19): Law requires employers with less than 500 employees and public employers to pay, at two-thirds of the employee’s regular pay, up to $200/day and $2,000 over the benefit period if the employee is unable to work because:
Emergency Family and Medical Leave (Section 3102)
Additional 10 Weeks Paid Leave: After the two weeks of emergency paid leave (above), employees of employers with fewer than 500 employees will be eligible to receive at least two-thirds of each employee’s usual pay, up to $200 per day. (Limit was included in the March 27th Act):
Public Healthcare Operators: Valuation Trends Summary
By: Jordan Tussy and Colin McDermott, CFA, CPA/ABV While the valuation of a public company is dependent on macroeconomic, industry...
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