Medicare Begins to Retain Payments to Recipients of COVID-19 AdvancesJuly 28, 2020
Medical providers and healthcare organizations that received advanced Medicare payments in response to volume interruptions caused by the COVID-19 shutdown will begin to repay those amounts.
Repayment begins 121 days from the date the advanced payments were first issued and proceeds for 90 days. Claims should continue to be submitted as usual, but Medicare will retain payments during this time to repay the amounts advanced.
After the 90-day recoupment period, any remaining amount will be invoiced in a demand letter and interest will begin to accrue.
If you are continuing to experience difficulties with reduced patient volume and cash flow, Grassi Healthcare Advisors is here to help. We recommend the following strategies:
- Adjust your staffing and other variable expenses based on the new reality of patient volume, including reorganizing your workflow for maximum efficiency.
- Plot out your revenue and expenses going forward in 12-week periods and strategize cash management and vendor payments.
- Increase revenue by providing services such as telemedicine in addition to in-person visits
- Review your revenue cycle processes to make sure that you are collecting everything you are entitled to
- Explore capital opportunities such as refinancing and bridge loans.
If you have any questions about the repayment of your advanced Medicare payments, or if you need assistance responding to volume and cash flow disruptions, please contact Joseph Tomaino, CEO of Grassi Healthcare Advisors, for a complimentary consultation.