HHS Announces New Round of Provider Relief FundsOctober 2, 2020
On Monday, October 5, healthcare providers who are serving on the frontlines of the COVID-19 pandemic can begin to apply for relief funds from a new Phase 3 General Distribution allocation.
The U.S. Department of Health and Human Services (HHS) announced another $20 billion yesterday to help providers recover from continued financial losses and increased expenses caused by the pandemic.
All providers who previously received and accepted or rejected a general distribution Provider Relief Fund (“PRF”) payment are eligible to apply. Providers that have not yet received PRF payments of 2 percent of patient revenue will receive a payment that, when combined with prior payments (if any), equals 2 percent of patient care revenue.
Some providers who were previously ineligible for the PRF payments can also apply to this phase. These providers include:
- Providers who began practicing between January 1, 2020 and March 31, 2020
- An expanded number of behavioral health providers, who were previously ineligible, serving the increased mental health and substance abuse issues exacerbated by the pandemic
To achieve an equitable distribution, HHS will first provide relief funds to those providers who had not previously received their 2 percent payment. Once those payments are made, HHS will then calculate an equitable add-on payment considering:
- 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
The Phase 3 portal will accept applications through November 6, 2020, but HHS encourages early application to expedite the review process, payment calculation and distribution of the funds.
Grassi’s Not-for-Profit professionals and Grassi Healthcare Advisors are committed to helping providers secure this relief and meet HHS relief reporting requirements. Please contact your Grassi advisor or David M. Rottkamp or Joseph Tomaino to learn more.