Relief Overview: Paycheck Protection Program and Health Care Enhancement Act

The Paycheck Protection Program and Health Care Enhancement Act was signed into law on April 24, 2020 to provide additional stimulus relief through new funding for small businesses, additional allocations for certain health care providers, and expanded COVID-19 testing.

Details on exactly how some of the new provisions will be administered are still forthcoming, but a summary of key provisions, especially those that could impact health care organizations, follows.

Paycheck Protection Program

The act provides an additional $310 billion in funding for the Paycheck Protection Program, which was enacted by the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27.

This supplements the original $349 billion allocated to the program, which was depleted earlier this April.

Economic Injury Disaster Loans (EIDLs)

The act also provides an additional $60 billion for the Small Business Administration (SBA) to administer EIDLs.

Of the $60 billion, $10 billion will be allocated for emergency grants.

Additional Funding for Health Care Providers

The act allocates $75 billion to the Public Health and Social Services Emergency Fund to be utilized to prevent, prepare for, and respond to COVID-19.

These funds are set aside for eligible health care providers for health care-related expenses or lost revenues related to the pandemic. The act excludes the use of these funds where potential reimbursement or credits have been obtained from other COVID-19-related legislation, such as the Families First Coronavirus Response Act or the CARES Act. 

Recipients of funds will be required to submit reports and maintain documentation as required by the secretary of the US Department of Health and Human Services (HHS). However, specific details on exact reports and documentation haven’t yet been provided.

Health care providers eligible for this program will include:

  • Public entities
  • Medicare or Medicaid enrolled suppliers and providers
  • For-profit and not-for-profit entities that provide diagnosis, testing, or care for individuals with possible or actual cases of COVID-19

Funds may be used for:

  • Building or construction of temporary structures
  • Leasing properties
  • Purchasing medical supplies and equipment, including personal protective equipment and testing supplies
  • Increasing workforce and trainings
  • Supporting emergency operation centers
  • Retrofitting facilities
  • Managing surge capacity

Funds will be made available by filing an application with the secretary of HHS justifying the need for the payment. Details on the application process aren’t yet available.

The Office of Inspector General (OIG) for HHS will oversee audits and enforcement to verify funds are provided to eligible recipients and spent for appropriate purposes. 

Additional Funding for COVID-19 Testing

The act allocates $25 billion for necessary expenses to research, develop, validate, manufacture, purchase, administer, and expand capacity for COVID-19 testing. This includes both tests for active infection and prior exposure. 

These funds can be used for the construction, alteration, renovation, or equipping of non-federally owned facilities for the production of diagnostic, serologic, or other COVID-19 tests or related supplies, medical supplies, and equipment. These include personal protective equipment, increased workforce and trainings, emergency operation centers, and surge capacity.

Of the $25 billion fund, designated amounts are set aside for specific entities and programs including:

  • $11 billion to states, localities, territories, tribes, tribal organizations, and urban Indian health organizations or health service providers to tribes
  • $600 million for grants under the Health Centers Program to federally qualified health centers
  • $225 million for rural health clinics as defined in Section 1861(aa)(2) of the Social Security Act

The mechanism for receiving funds under this program have yet to be detailed  . For additional information on previous grants and funding, read our article.  

We’re Here to Help

To learn more about how your organization can seek relief through the Paycheck Protection Program and Health Care Enhancement Act, contact your Moss Adams professional.

Note on COVID-19

During this unparalleled time, we’re closely monitoring the COVID-19 situation as it evolves so we can provide up-to-date guidance and support to help you combat uncertainty. For regulatory updates, strategies to help cope with subsequent risk, and possible steps to bolster your workforce and organization, please see the following resources: