HHS announces $20 billion in new Phase 3 Provider Relief Funding
Article

HHS announces $20 billion in new Phase 3 Provider Relief Funding

On Oct. 1, 2020, the U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), is announcing $20 billion in new funding for providers on the frontlines of the coronavirus pandemic.

For eligible providers, the new Phase 3 General Distribution is designed to balance an equitable payment of 2% of annual revenue from patient care for all applicants plus an add-on payment to account for revenue losses and expenses attributable to COVID-19.

Eligibility

  • Providers who previously received, rejected or accepted a General Distribution Provider Relief Fund payment. Providers that have already received payments of approximately 2% of annual revenue from patient care may submit more information to become eligible for an additional payment.
  • Behavioral health providers, including those that previously received funding and an expanded group of providers confronting the emergence of increased mental health and substance use issues exacerbated by the pandemic.
  • Healthcare providers that began practicing Jan. 1, 2020 through March 31, 2020. This includes Medicare, Medicaid, Children’s Health Insurance Program (CHIP), dentists, assisted living facilities and behavioral health providers.

Payment methodology – apply early

  • All provider submissions will be reviewed to confirm they have received a Provider Relief Fund payment equal to approximately 2% of patient care revenue from prior general distributions. Applicants that have not yet received Provider Relief Fund payments of 2% of patient revenue will receive a payment that, when combined with prior payments (if any), equals 2% of patient care revenue.
  • With the remaining balance of the $20 billion budget, HRSA will then calculate an equitable add-on payment that considers the following:
    - A provider’s change in operating revenues from patient care
    - A provider’s change in operating expenses from patient care, including expenses incurred related to coronavirus
    - Payments already received through prior Provider Relief Fund distributions.

HHS is urging all eligible providers to apply early; do not wait unit the last day or week of the application period.

All payment recipients will be required to attest to receiving the Phase 3 General Distribution payment and accept the associated Terms and Conditions.

Application deadline

Providers will have from Oct. 5, 2020 through Nov. 6, 2020 to apply for Phase 3 General Distribution funding.

Please visit the U.S. Department of Health and Human Services’ Provider Relief website for additional updates or learn more about the Provider Relief Fund program.

For more information on this topic, or to learn how Baker Tilly's Value Architects™ can help, contact our team.

Mark Ross
Healthcare Practice Leader, CPA
Root cause analysis: A critical ethics and compliance piece
Next up

Root cause analysis: a critical ethics and compliance piece