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Blog | Coronavirus

HHS announces Phase 3 CARES Act Provider Relief Funding

Blog | Coronavirus

HHS announces Phase 3 CARES Act Provider Relief Funding

  • On Oct.  1, the U.S. Department of Health and Human Services (HHS) announced a third phase of general distribution funds for providers in which it will allocate an additional $20 billion.
  • It appears this distribution will first “top-off” any provider that has not received approximately 2% of its patient care revenue, based on HHS’s press release.
  • HHS will accept applications for Phase 3 funding from Oct. 5 through Nov. 6.

On Oct.  1, the U.S. Department of Health and Human Services (HHS) announced a third phase of general distribution funds for providers in which it will allocate an additional $20 billion. Based on HHS’s press release, it appears this distribution will first “top-off” any provider that has not received approximately 2% of its patient care revenue.

The funds are available for:

  • Providers who previously received, rejected or accepted a General Distribution Provider Relief Fund payment. Providers that have already received payments of approximately 2% 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 Jan. 1, 2020, through March 31, 2020. This includes Medicare, Medicaid, CHIP, dentists, assisted living facilities and behavioral health providers.

Criteria for additional provider relief funds

HHS will consider providers’ eligibility for additional funding based on the following criteria:

  • All provider submissions will be reviewed to confirm they have received a Provider Relief Fund payment equal to approximately 2% of patient care revenue from prior general distributions. Applicants that have not yet received Relief Fund payments of 2% of patient revenue will receive a payment that, when combined with prior payments (if any), equals 2% of patient care revenue.
  • With the remaining balance of the $20 billion budget, Health Resources and Services Administration (HRSA) will then calculate an equitable add-on payment that considers the following:
    1.  A provider’s change in operating revenues from patient care
    2. A provider’s change in operating expenses from patient care, including expenses incurred related  to coronavirus
    3. Payments already received through prior CARES Act Provider Relief Fund distributions

How to apply for Phase 3 funding

HHS will accept applications for Phase 3 funding from Oct. 5 through. Nov 6. The announcement by HHS is available here. Instructions for how to apply for Phase 3 General Distribution are now posted

About the Author

Chad Mulvany, FHFMA,

is director, healthcare finance policy, strategy and development, HFMA’s Washington, D.C., office.

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