HHS Announces Phase 3 Provider Relief Funding

On October 1, 2020, the U.S. Department of Health & Human Services (HHS), through the Health Resources and Services Administration, announced $20 billion in new phase 3 provider relief funding.

Eligibility

Per the notice, allocation of funds under this general distribution will be open to the following providers:

• Providers that previously received, rejected, or accepted a general distribution Provider Relief Fund (PRF) payment. Providers that have already received payments of approximately 2 percent 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 new providers
• Healthcare providers that began practicing January 1, 2020, through March 31, 2020. This includes Medicare, Medicaid, CHIP, dentists, assisted living facilities, and behavioral health providers

This is welcome news to providers that were ineligible for previous funding, such as those that began practicing in 2020 and certain behavioral health providers that are confronting the emergence of increased mental health and substance abuse issues.

Payment Criteria Method

Payments to eligible providers will be allocated based on the below criteria:

• Provider applications will be reviewed for comparison to confirm previously received PRF payments to equal approximately 2 percent of patient care revenue from prior general distributions
  • Applicants that haven’t 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
• With the remaining balance of the $20 billion budget, an equitable add-on payment will be calculated 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
  • Payments already received through prior PRF distributions

Application Deadline

Providers can submit their application from Monday, October 5, 2020, through November 6, 2020. HHS urges providers against waiting to apply until the last week of the application window, and to apply early to help expedite the review process and distribution of funds to as many providers as possible.

To read the full HHS announcement, visit the HHS website. If you have any questions, reach out to your BKD Trusted Advisor™ or use the Contact Us form below.

This information is only valid as of the date of this publication and is subject to change. The content was presented for illustrative purposes and your information only. Applying this information to your situation requires careful consideration of facts, circumstances, and timing of requirements. Consult your BKD advisor or legal counsel to apply to your unique situation and circumstances.