Additional Funding Opportunity for COVID-Impacted Health Care Providers
Many accountants are witnessing health care providers who are experiencing significant financial hardships in the COVID-19 pandemic. Congress provided $175 billion in relief funds to the U.S. Department of Health and Human Services (HHS) to deliver financial relief to hospitals and other health care providers, including those on the front lines of the coronavirus response. Since March, HHS, through the Health Resources and Services Administration (HRSA), has been distributing the funds to various providers in phases to support their increased healthcare-related expenses or lost revenue that is attributable to COVID-19 and to reimburse claims for the testing and treatment of uninsured individuals diagnosed with COVID-19.
1. Determine Eligibility
To be eligible to apply, the applicant must have either:
- Billed Medicare fee-for-service during the period of Jan.1, 2019-Dec. 31, 2019; or
- Be a Medicare Part A provider that experienced a change in ownership and billed Medicare fee-for-service in 2019 or 2020 that prevented the otherwise eligible provider from receiving Phase 1 General Distribution payment
- Billed Medicaid / CHIP programs or Medicaid managed care plans for health-related services between Jan.1, 2018-Dec.31, 2019; or
- Billed a health insurance company for oral healthcare-related services as a dental service provider; or
- Be a licensed dental service provider who does not accept insurance and has billed patients for oral healthcare-related services
Additionally, to be eligible to apply, the applicant must meet all of the following requirements:
- Filed a federal income tax return for fiscal years 2017, 2018, 2019; or be exempt from filing a return
- Provided patient care after January 31, 2020 (Note: patient care includes health care, services, and support, as provided in a medical setting, at home, or in the community)
- Did not permanently cease providing patient care directly or indirectly
- Did not receive a previous General Distribution payment totaling approximately 2 percent of annual patient revenue
- For individuals, reported on Form 1040 (or other tax forms) gross receipts or sales from providing patient care
Please note: Receipt of funds from SBA and FEMA for coronavirus recovery or of Medicaid HCBS retainer payments does not preclude a healthcare provider from being eligible.
For detailed information on eligibility for Phase 2 General Distribution, read the Eligibility FAQs. Providers that are not eligible for the Phase 2 General Distribution may be eligible for future distributions.
2. Validate Tax ID Number
Depending on TIN validation, disbursements generally take 5-7 weeks.
All providers who register before the deadline will be considered.
If the TIN is recognized, begin with Step 4. Recognized TINS are verified on a state-provided 3rd party list.
If the TIN is not recognized:
- Provider registers in the portal and enters TIN.*
*Process applies only to Medicaid / CHIP / Dental providers
HHS shares unrecognized provider TINs with 3rd party validators** (Timing: 7-10 business days)
**Validators are Medicaid / CHIP agencies, dental organizations, etc.
- Validator reviews provider information for eligibility (e.g. actively in practice, in good standing, etc.) and shares results with HRSA (Timing: 7-10 days)***
***Assumes validator responds within the requested timeframe; the majority of validators respond by the requested deadline
- HRSA accepts determination, updates portal, and notifies provider they can apply (Timing: 3-5 business days)
- Provider re-enters portal and completes an application for payments (Timing: 10-14 business days)
3. Apply for Funding
Providers must apply through the Provider Relief Fund Application and Attestation Portal .
Application deadline: August 28, 2020
Documentation required to submit the application includes:
- Most recent federal income tax return for 2017, 2018, or 2019, unless exempt
- Quarterly Federal Tax Return (IRS Form 941 for Q1 2020) or Federal Unemployment Tax Return (IRS Form 940)
- FTE worksheet
- Revenue worksheet (if required by Field 15)
4. Receive Payment
Providers may receive up to a total of 2% of reported revenue from patient care.
- Payments will be disbursed on a rolling basis, as information is validated
- All Provider Relief Fund distributions will be paid to the Filing / Organizational TIN, and not directly to subsidiary TINs
For more detailed information on receiving payment, please see Provider Relief Fund FAQs
5. Attest to Payment
Providers who receive Provider Relief Fund payments must accept or reject funds within 90 days* through the Provider Relief Fund Application and Attestation Portal .
*Not actively attesting within 90 days will be viewed as acceptance.
- If the provider accepts payment, they must attest to the terms and conditions of the payment.
- If provider rejects the payment, they must return funds to HHS within 15 calendar days and may still be considered for future distributions
Requirements from the Provider Relief Fund terms and conditions include (not exhaustive):
- To be eligible, the provider must have provided diagnosis, testing, or care for actual or possible COVID-19 patients on or after Jan.31, 2020 (Note: HHS broadly views every patient as a possible case of COVID-19 for purposes of eligibility)
- Payment will be used to prevent, prepare for, and respond to coronavirus, and reimburse healthcare-related expenses or lost revenues attributable to coronavirus
- Payment will not be used for expenses or losses that have been or will be reimbursed from other sources
- Recipient consents to public disclosure of payment
6. Report on Use of Funds
All providers receiving Provider Relief Fund payments are required to comply with the reporting requirements described in the Terms and Conditions and specified in future directions issued by the HHS Secretary.
HHS will require recipients to submit future reports relating to the recipient’s use of Provider Relief Fund money.
Provider Relief Fund payments may be used to cover lost revenue attributable to COVID-19 or health-related expenses purchased to prevent, prepare for, and respond to coronavirus, including but not limited to:
- Workforce training
- Reporting COVID-19 test results to federal, state, or local governments
- The building or constructing temporary structures for COVID-19 patient care or non-COVID-19 patients in a separate area
- Acquiring additional resources, including facilities, supplies, or staffing to expand or preserve care delivery
- Developing and staffing emergency operation centers
Recipients of >$10,000 will be required to submit reports about the use of their Provider Relief Fund distribution. For more information, read General and Targeted Distribution Post-Payment Notice of Reporting Requirement – PDF.