[Federal Register Volume 74, Number 93 (Friday, May 15, 2009)]
[Notices]
[Pages 22931-22932]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-11307]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Office of the Secretary


Hospital Preparedness Program (HPP)

AGENCY: Office of the Assistant Secretary for Preparedness and 
Response, HHS.

ACTION: Notice.

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SUMMARY: This notice sets forth the Secretary's decision to require 
Hospital Preparedness Program [HPP] cooperative agreement recipients to 
contribute non-Federal matching funds starting with the FY 2009 funding 
cycle and each year thereafter. The amount of the cost sharing 
requirement in FY 2009 will be five percent of the award amount and in 
FY 2010 and each year thereafter the amount of match will be ten 
percent of the award amount.

FOR FURTHER INFORMATION CONTACT: Robert Dugas, Team Leader, Hospital 
Preparedness Program, 202-245-0732.

SUPPLEMENTARY INFORMATION: Authorized by section 319C-2 of the Public 
Health Service (PHS) Act, as amended by the Pandemic and All-Hazards 
Preparedness Act (PAHPA) (Pub. L. 109-417), the HPP is a cooperative 
agreement program funded and administered by the Assistant Secretary 
for Preparedness and Response (ASPR). Its purpose is to improve surge 
capacity and enhance community and hospital preparedness for public 
health emergencies. Currently there are 62 awardees comprised of the 50 
States; the District of Columbia; the three metropolitan areas of New 
York City, Los Angeles County and Chicago; the Commonwealths of Puerto 
Rico and the Northern Mariana Islands; the territories of American 
Samoa, Guam and the U.S. Virgin Islands; the Federated States of 
Micronesia; and the Republics of Palau and the Marshall Islands.
    Since the inception of the program in 2002, awardees have received 
funding through a statutory formula that employs a base allocation with 
an adjustment for population. PAHPA amended section 319C-1 and 319C-2 
of the PHS Act to add certain accountability provisions.
    Consistent with those accountability provisions, a notice appeared 
in the Federal Register on May 16, 2008, (73

[[Page 22932]]

FR 28471-72) soliciting public comments on a proposal to introduce a 
cost sharing requirement for the HPP program. Twenty-eight comments 
were received from hospitals, hospital associations, State Health 
Officials, and professional organizations. The comments received 
included concerns about finding the resources needed to cost share, 
additional administrative recordkeeping related to cost sharing, and 
overall decreased participation in the HPP. In response, HHS believes 
the concerns that were raised about awardees finding the resources 
needed to cost share, additional administrative recordkeeping, and a 
potential for decreased participation in the HPP are outweighed by the 
benefits a cost sharing requirement will bring to HPP. The cost sharing 
requirement will be a concrete way of solidifying collaboration between 
States and the Federal government in assuring this program will achieve 
enhanced sustainability in healthcare system preparedness during and 
after the project period has ended.
    Thus, HPP cooperative agreement recipients will be required to 
contribute non-Federal matching funds starting with the FY 2009 funding 
cycle and each year thereafter. Awardees will be required to make 
available, either directly or through donations from public or private 
entities, non-Federal contributions in an amount equal to five percent 
of the award amount in FY 2009 and ten percent of the award amount in 
FY 2010 and each successive year for the duration of the program. Non-
Federal contributions will be provided directly or through donations 
from public or private entities and may be in cash or in kind, fairly 
evaluated, including plant, equipment or services. Amounts provided by 
the Federal government, or services assisted or subsidized to any 
significant extent by the Federal government, may not be included in 
determining the amount of such non-Federal contributions.
    The cost sharing requirement will apply to the entire award amount 
received by the awardee from the U.S. Department of Health and Human 
Services through the HPP.
    The cost sharing requirement will be enforced as a term and 
condition of the HPP award.

    Dated: May 8, 2009.
William C. Vanderwagen,
Assistant Secretary for Preparedness and Response, U.S. Department of 
Health and Human Services.
[FR Doc. E9-11307 Filed 5-14-09; 8:45 am]
BILLING CODE 4150-37-P