More Funding Available For Healthcare Providers
New Updates From HHS for Provider Relief Funds and Reporting Deadlines
Announced on September 10, the Department of Health and Human Services (HHS) has released new guidance surrounding Phase 4 of the Provider Relief Fund (PRF), reconsiderations for Phase 3 funding, and updated reporting deadlines for Phases 1-3. HHS will release a new application portal starting September 29 for the fourth phase of the CARES Act funds from the Provider Relief Fund. The portal will close on October 26, 2021. This fund allocated $25.5 billion to providers as well as explained some changes and clarification on funds that were already disbursed. Most Medicare funding billers received automatic deposits in April 2020 with additional deposits from May through August and again from December 2020 through February 2021. Dentists and Medicaid billers were included in a second phase which started in July 2020.
Phase 4 Applications
For this new phase, there will be two pools of funds.
- Phase 4 General Distribution: $17 billion reserved for providers who can document revenue loss and expenses from the pandemic. To support providers with the highest level of need, HSRA will reimburse a higher percentage of lost revenue and expenses for smaller providers. They will also provide “bonus” payments based on the amount of services they provide to Medicaid, CHIP, and Medicare patients.
- American Rescue Plan Rural: $8.5 billion is reserved for rural Medicaid, CHIP, or Medicare servicers who live in the Federal Office of Rural Health Policy defined rural areas.
More information will be released about this application closer to its release on September 29. You can review eligibility information posted to the PRF Future Payments website as new details are released.
Phase 3 Reconsiderations
To provide transparency in the PRF program, HHS released detailed information about the methods used to calculate Phase 3 payments. If you believe your Phase 3 payment was calculated incorrectly according to these methods, you will have an opportunity to request a reconsideration. Further details will be released on the PRF Future Payments website, and we will keep you updated as information becomes available.
Phase 1-3 Reporting
If you received more than $10,000 per reporting cycle in Phases 1 through 3, you are subject to certain reporting requirements to show how you used the funds or report lost revenue. These funds must be balanced with funding received from the Paycheck Protection Program (PPP), the Employee Retention Tax Credit (ERTC), and any other COVID-related grants to avoid double dipping.
- If you received more than $10,000 from April 2020 through June 30, 2020, you have a filing requirement due September 30, 2021. On September 10, a grace period was announced that runs through November 30, 2021.
- If you received more than $10,000 from July 1, 2020 through December 31, 2020 you have a filing requirement due March 31, 2022.
Though the process to receive funding and complete reporting can be complex, our healthcare industry team is equipped and ready to help you be proactive with applications and reporting. If you need help with the PRF, contact your Adams Brown advisor today.