The healthcare sector has been hard hit by COVID-19 and CARES Act has provided stimulus funding of $175 billion in Provider Relief to hospitals and healthcare providers on the front lines of the coronavirus response. Provider Relief Funds (PRF) are being disbursed for general and targeted distributions in 3 Phases. Each phase of funding has terms and conditions and reporting requirements of which recipients should be aware. Below are the most frequently asked questions that we have received about Provider Relief Funds:

Top 3 FAQs

Question: If an organization paid for COVID related expenses which they would not have paid otherwise, are these acceptable under Health care related expenses? The 10/22 notification indicated "over and above" other sources, can you expound on this further?

Answer: The Post-Payment Notice of Reporting Requirements dated November 2, 2020 (and updated 1/15/21) guidance clarifies and states: the actual expenses incurred over and above what has been reimbursed by other sources”. Essentially this is stating that expenses covered by Provider Relief Funds should not also be paid for by other funding i.e. no “double dipping.” This is also why we emphasized that expenses must be allocated appropriately to prevent “double dipping.”

Question: Can we use our PRF funds solely for lost revenue?

Answer: In the most recent Post-Payment Notice of Reporting Requirements dated November 2, 2020, the PRF funds should first be applied to health care related expenses attributable to Coronavirus, then the organization should calculate the "Lost Revenues Attributable to Coronavirus". If the funds are not fully expended in 2020, the organization has until June 2020 to expend the funds. Any unused portion of the funds will need to be repaid.

Question: How is Lost Revenue attributable to Coronavirus calculated and what information is needed to support the calculation?

Answer: To calculate lost revenues attributable to coronavirus, the provider will need to provide actual quarterly data for the following:

• Revenue, net charges from patient care for the calendar year 2019 and 2020.
• Expenses for calendar year 2019 and 2020 in the following categories:
  • General and Administrative Expenses
  • Healthcare Related Expenses
• Non-Financial Data such as:
  • Personnel Metrics: Full time, part time, new hires, etc.)
  • Patient Metrics: Number of Patient Visits (in-person or telehealth), total number of admissions, resident patients, etc.
  • Facility Metrics: Total available staffed beds for medical/surgical, critical care, etc.

Question: Do I have to use all of the Provider Relief Funds by December 31, 2020?

Answer: Providers with unspent funds at December 31, 2020 have six months to use the remaining funds and must submit a second and final report no later than July 31, 2021 which includes patient care related revenue amounts earned January 1 – June 30, 2021.

If you have additional questions on the Provider Relief Funds or need assistance determining your reporting requirement, please contact us.