Did the local hospitals get some subsidy back to pay for COVID deaths? Money is always a big motivator to do stuff like that.
I believe it was done under the CARES Act's Provider Relief Fund. I think it ended up being funded to around $175 billion in 2020 - more than twice as much as we've sent to Ukraine (including humanitarian, financial, security assistance, weapons and equipment, grants and loans for weapons and equipment).
The payments were made on both a general and targeted basis. I believe the general distribution was based on how many Medicare patients had been served the previous year. The targeted distribution is what has been described, of which there was somewhere between $20 and $22 billion.
https://www.hrsa.gov/provider-relief/payments-and-data/past-payments/targeted-distributionThe first round of COVID-19 High-Impact Area payments paid out $76,975 for each COVID 19 admission through April 10, 2020 if the hospital had over 100 admissions.
The second round of COVID-19 High-Impact Area payments provided $50,000 per COVID 19 admission for hospitals with a COVID-19 admission count over 160 between January 1 and June 10, 2020, or if the COVID admission per bed was at least 0.54864.
There were some other targeted payments but that $20-22 billion were the only federal programs I'm aware of that specifically compensated hospitals for the number of COVID-19 admissions.
Some states took other CARES funding and allocated it to healthcare providers, but I'm not sure how those funds were distributed.