Round 2: Healthcare Provider Relief Funds
More Funding Available For Medical Professionals
By Jennifer Allen
In addition to the Payroll Protection Program (PPP) and EIDL options, healthcare providers, professionals, and municipal entities that bill Medicaid are eligible for an additional lifeline: a piece of the $50 billion relief package currently being distributed by the Department of Health and Human Services.
Earlier in April, healthcare providers and professionals began receiving much-needed federal relief assistance based on their share of Medicare fee-for-service reimbursements in 2019.
Regardless of whether you already received your relief fund payment or are waiting in line, this is good news for the healthcare industry.
In late April, HHS began distributing the remaining $20 billion in federal relief. $30 billion was distributed earlier in the month, for a total of $50 billion in relief allocated based on your share of net patient revenue.
What do you need to do to receive relief?
The final $20 billion will be paid out to you depending on what information HHS already has on file:
- If you already file cost reports, you should have already received an advance based off the revenue data submitted in CMS cost reports. You will still need to confirm your information on the general distribution portal.
- If you do not have cost report data, to access these funds you will need to submit your revenue on the general distribution portal.
What information do you need?
You will need:
- Your EIN,
- The amount you received earlier in April with transaction number or check number,
- Your 2018 (or 2019, if filed) tax return,
- Your estimated lost revenue in March and April 2020
- Lost revenue can be estimated by comparing year-over-year revenue, or by comparing budgeted revenue to actual revenue. For April 2020, an estimate of the total monthly loss based on data from the first few weeks in April or by extrapolation from March data is acceptable.
When will further payments be distributed?
Payments will go out weekly, on a rolling basis, as your information is validated.
If you haven’t already confirmed receipt of the previous funds, you must do that on the CARES Act Provider Relief Fund Payment Attestation Portal within 30 days of receiving the funds and agreeing to the terms & conditions.
So you’ve received the funds, now what?
Operating in the COVID-19 environment continues to challenge the industry, but out of great disruption comes growth and advancement.
In addition to PPP and EIDL funding options, these unprecedented healthcare funds create both challenges and opportunities for you to take your practice to the next level.
In the required fund terms and conditions, there are some stipulations on what the funds can be used for. In this unusual time, make sure to consult with your Adams Brown advisor to ensure compliance and weigh all of your options and avenues for continued success.
Whom can I contact for more information?
To learn more, please contact Jennifer Allen, CPA, CMPE, Senior Manager at (316) 683-2067. You can also fill out this contact form.
For additional information, please visit hhs.gov/providerrelief or call the CARES Provider Relief line at (866) 569-3522, TTY 711.