(LEX 18) — Kentucky has secured more than $105 million in FEMA disaster funds to reimburse six hospitals and Kentucky Emergency Management for expenses incurred during the COVID-19 pandemic, Gov. Andy Beshear announced May 22.
The reimbursements cover costs incurred between January 2020 and May 11, 2023, under FEMA Disaster 4497 — Kentucky COVID-19 Pandemic Major Disaster. Eligible expenses included hospital safety, patient care, materials and supplies, personal protective equipment, medical support, contract labor, emergency protective measures, and medications such as remdesivir.
"What our hospitals did during the pandemic is nothing short of heroic, and my administration worked hard to make sure the reimbursements they were owed under the president's emergency declaration were delivered," Beshear said. "While this funding is being received years later, it couldn't come at a better time, as our hospitals face challenges due to federal Medicaid cuts. This $105 million will make a difference for these hospitals and the Kentucky families who depend on them, which is why today's news is so great."
The hospitals receiving funding and their reimbursement amounts are:
- Appalachian Regional Healthcare (ARH): $22,944,962.88
- Baptist Health: $17,207,818.93
- UofL Health: $13,397,435.97
- T.J. Samson Community Hospital: $6,917,666.16
- AdventHealth Manchester: $1,628,812.06
- Pikeville Medical Center: $1,447,750.47
Kentucky Emergency Management (KYEM) will receive the largest single reimbursement at $41,820,598.35.
Eric Gibson, director of KYEM, said his agency is moving quickly to distribute the funds.
"Our first responders and hospitals went to great lengths to protect the lives of Kentuckians during the pandemic, and I am grateful that we were able to secure this funding and provide the reimbursements these hospitals and our team deserve," Gibson said. "We are processing the funds as quickly as possible so teams can put those dollars to good use as they continue to care for and protect people across our commonwealth."
Hospital leaders said the funding will directly support current and future operations.
Chris Graff, system vice president of financial operations at Baptist Health, said the money will help expand access to care in rural communities, including an 80,000-square-foot expansion already underway at Baptist Health Corbin.
"This is exciting news, especially for the support it will provide in expanding access to care in rural communities," Graff said. "In addition to identifying new opportunities to expand care and bring services closer to home for patients and families across the commonwealth, the funds will provide support for projects already underway in rural communities, including the 80,000-square-foot expansion at Baptist Health Corbin."
UofL Health CEO Dr. Jason Smith said the funding helps close a difficult chapter in the state's healthcare history.
"On behalf of UofL Health I want to thank the state, as well as FEMA, for the release of these funds and the ongoing leadership to ensure the strength of Kentucky's healthcare system," Smith said. "There were so many providers across the state that stepped up to do their part to stand up testing sites, deliver vaccines, protect our neighbors and alleviate fears. This money goes a long way to close that chapter and open up what I hope is the next chapter of healthcare in the commonwealth."
Neil Thornbury, CEO of T.J. Regional Health, said the reimbursement acknowledges both the sacrifices of healthcare workers and the ongoing need for rural healthcare access.
"On behalf of T.J. Samson Community Hospital, we are deeply grateful to Gov. Beshear and FEMA for recognizing the extraordinary challenges and unprecedented expenses that hospitals faced throughout the pandemic," Thornbury said. "There were tremendous demands on healthcare organizations across Kentucky, and this funding acknowledges both the sacrifices made by healthcare workers and the ongoing need to ensure rural communities have access to strong, dependable healthcare close to home. We are proud of how our team responded during one of the most difficult periods in healthcare history, and this support will help us continue building for the future."
Nick Bejarano, president and CEO of AdventHealth Manchester, said the funding will support continued care for Clay County and the surrounding region.
"AdventHealth Manchester is grateful to Governor Beshear and the Commonwealth of Kentucky for this meaningful support. During the COVID-19 pandemic, rural hospitals like ours faced unprecedented pressure as we worked to protect our patients, team members and community while continuing to serve as a local safety net. AdventHealth Manchester incurred significant costs for staffing, supplies, personal protective equipment and other resources needed to care for Kentuckians during that extraordinary time," Bejarano said. "This funding will support our ability to continue serving Clay County and the surrounding region with compassionate, whole-person care close to home. We are proud of the resilience and dedication our team showed during one of the most difficult periods in history, and we remain committed to preserving long-term access to high-quality care for our communities and to Extending the Healing Ministry of Christ."
Hollie Harris, president and CEO of ARH, said the funds arrive as the organization marks 70 years of service to Eastern Kentucky and southern West Virginia.
"We are grateful for Gov. Beshear's leadership and support in helping secure these FEMA reimbursement funds for ARH and healthcare providers across Kentucky. This important support acknowledges both ARH's response to the COVID-19 public health emergency and the remarkable dedication of our physicians, nurses, clinicians and team members who served on the front lines throughout the pandemic. Their compassion, resilience and unshakable commitment helped protect our communities and guide them through one of the most challenging periods in modern healthcare and continues to define who we are as an organization today," Harris said. "As ARH marks 70 years of service to Eastern Kentucky and southern West Virginia, we are also looking ahead. These funds come at a time when we remain focused on strengthening our health system to navigate an evolving healthcare landscape — supporting our workforce, preserving access to essential services, and ensuring high-quality care for the communities that depend on us today and for generations to come."
Donovan Blackburn, president and CEO of Pikeville Medical Center, said the award reflects the true cost of his hospital's pandemic response.
"This FEMA Public Assistance award is a testament to the extraordinary commitment Pikeville Medical Center made to our community during one of the most challenging public health crises in modern history," Blackburn said. "Our team answered the call without hesitation, and we are grateful this funding reflects the true cost of that service. We appreciate the leadership and support of our government partners at every level. Their guidance made it possible for us to remain focused on what matters most: caring for the people of Eastern Kentucky."
