HHS Announces $20 Billion in Provider Relief FundingOctober 05, 2020
Healthcare providers will want to read up on a new relief fund announced by the HHS. Application begins October 5, 2020. Here’s what you need to know.
On October 2, 2020 the U.S. Department of Health and Human Services (HHS) announced they will be providing $20 billion in new funding for providers on the frontlines of the coronavirus pandemic. Providers can begin applying for funds on Monday, October 5, 2020. We share the details here.
What’s inside the new funding package?
HHS has already issued over $100 billion in relief funding, but recognized that many providers continue to struggle financially. HHS also recognizes that stay-at home orders and social constraints have put a strain on mental health. For these reasons, the new Phase 3 General Distribution is designed to balance an equitable payment of 2% of annual revenue from patient care for all applicants, with an additional add-on payment to account for revenue losses and added expenses of COVID-19.
What providers are eligible?
- Providers who have already received Provider Relief Fund payments will be invited to apply for additional funding that takes into account financial losses and changes in operating expenses brought on by the pandemic.
- Providers who began practicing January 1, 2020 through March 31, 2020. They were previously not eligible. This includes Medicare, Medicaid, CHIP, dentists, assisted living facilities and behavioral health providers.
- Behavioral health providers (new and old) who provide mental health and substance abuse treatment (two problems exacerbated by coronavirus).
What is the application process?
Providers will be considered for funding against the following criteria:
- Provider submissions will be reviewed to make sure they received a provider relief fund payment equal to approximately 2% of patient care revenue from prior general distributions. (If you have not yet received relief fund payments, you will received a payment equal to 2% of patient care revenue).
- HRSA will calculate an equitable add-on payment with the remaining balance that considers three things:
- A provider’s change in operating revenues from patient care
- A provider’s change in operating expenses from patient care, including those incurred due to COVID-19
- Payments already received through prior provider relief fund distributions.
What is the deadline?
HHS is urging eligible providers to apply early. This will accelerate the distribution of payments. Eligible providers will have from October 5, 2020 through November 6, 2020 to apply for the Phase 3 General Distribution Funding.
Questions about the funding? HHS is hosting webinars to assist providers through the application process and the call center is open for questions as well.
Learn more here: https://www.hhs.gov/coronavirus/cares-act-provider-relief-fund/
Contact us for further guidance.