See updated details and information on Provider Relief Fund reporting requirements released June 11, 2021, by the HHS.
On October 1, 2020, the Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), announced a new $20 billion Phase 3 General Distribution of the Provider Relief Fund (PRF).
The PRF was designed to financially support qualified health care providers during the COVID-19 pandemic. Through the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Paycheck Protection Program and Health Care Enhancement Act (PPPCHE), the federal government has allocated a total of $175 billion in payments. Qualified providers of health care, services, and support may receive PRF payments for health care-related expenses or lost revenue due to COVID-19. Separately, the COVID-19 Uninsured Program reimburses providers for testing and treating uninsured individuals with COVID-19.
Under this Phase 3 General Distribution allocation, providers who previously received, rejected, or accepted PRF payments and met eligibility criteria may apply for additional funding. Phase 3 funding expands eligibility to behavioral health providers who weren’t previously eligible and providers who began practicing January 1, 2020, through March 31, 2020.
If recipients comply with the terms and conditions, this distribution doesn’t need to be repaid to the US government.
The window to apply for these funds is October 5, 2020, through November 6, 2020. HHS encourages providers to apply early.
Visit the HHS site to learn how to apply.
PRF payments may be used to cover health-related expenses; purchased to prevent, prepare for, and respond to COVID-19 including:
- Workforce training
- Building or constructing temporary structures for COVID-19 patient care
- Developing and staffing emergency operation centers
- Lost revenue attributable to COVID-19
For eligible providers, the new Phase 3 General Distribution is intended to provide a payment to match approximately 2% of annual patient care revenue when combined with all prior General Distribution payments. The remaining Phase 3 $20 billion budget will be used to calculate an equitable add-on payment.
The add-on payment considers the following factors:
- Change in provider’s operating revenues from patient care
- Change in provider’s operating expenses from patient care including expenses incurred related to COVID-19
- Payments already received through prior PRF distributions
Some of the entities eligible for the new funds include, but aren’t limited to:
- All providers eligible for a previous PRF distribution whether the funds were applied for, received, accepted, or rejected
- New 2020 providers
- Behavioral health providers including substance use disorder, counseling, and psychiatric services
More specific eligibility requirements—including details for assisted living facilities, dental providers, as well as Medicaid, Children’s Health Insurance Program (CHIP), and Medicare-managed plans—are outlined here.
Receiving Funds & Attestation
All PRF General Distributions are paid to the filing or organizational TIN and not directly to subsidiary TINs.
Recipients who receive PRF payments must accept or reject funds within 90 days of receipt through the PRF Application and Attestation Portal. Not returning the payment within 90 days of receipt will be viewed as acceptance of the terms and conditions.
All recipients of PRF aggregated payments greater than $10,000 are required to comply with reporting requirements, the terms and conditions, and other requirements as may be specified in future directions issued by the HHS Secretary.
For additional information, visit these HHS links:
We’re Here to Help
To learn more about the PRF application process and new reporting requirements, please contact your Moss Adams professional.
You can also read our article about the new cost report guidance from CMS, which covers COVID-19 funding and how to report PRF, the Small Business Association’s (SBA) PPP loans, and payroll tax deferral. See the full collection of resources on our Health Care content hub or take a deeper dive with COVID-19-related content.