More funds available from HHS general funds to Healthcare providers

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Paycheck Protection Program Update – 4/26/20
April 26, 2020
Keeping Patients Insured During COVID-19
May 5, 2020

More funds available from HHS general funds to Healthcare providers

As of April 24, 2020, HHS is distributing an additional $20 billion to providers based on an allocation method.  The funds are grants and do not need to be repaid.  The additional funds are being distributed by the Health Resources Service Administration (HRSA) section of the US Department of Health and Human Services (HHS) as part of the distribution of the remaining $70 billion in funds. Find more information on the HHS Relief Fund page.

HHS is asking providers who have already received payments from the initial distribution of $30 billion to supply information from IRS tax filings and to supply estimates of lost revenues in March and April of 2020, if they wish to be eligible to receive additional funds.  In the nine pages of Questions and Answers, HHS has provided input on a method to estimate lost revenues, and other helpful information.

Specific highlights related to both general fund distributions of $50 billion:

  • Providers that received a distribution from the initial $30 billion fund will be eligible to receive additional funds.
  • HHS will be allocating these additional funds to augment providers’ allocations so that the whole $50 billion general distribution is allocated proportional to providers’ share of 2018 net patient revenue.
  • Providers who receive funds from the general distribution have to sign an attestation confirming receipt of funds and agree to the terms and conditions.
  • All recipients will be required to submit documents sufficient to ensure that these funds were used for healthcare-related expenses or lost revenue attributable to coronavirus. There will be significant anti-fraud and auditing work done by HHS, including the work of the Office of the Inspector General.
  • Providers must agree not to seek collection of out-of-pocket payments from a presumptive or actual COVID-19 patient that are greater than what the patient would have otherwise been required to pay if the care had been provided by an in-network provider.
  • Here is a helpful tutorial.