Payments on the way to Healthcare providers under the CARES Act! Payments to providers are being distributed starting April 10th, 2020.
The CARES Act provides relief funds to hospitals and other healthcare providers on the front lines of the coronavirus response. Recognizing the importance of delivering funds in a fast and transparent manner, the Department of Health and Human Services (HHS) is distributing $30 billion of the relief funds immediately.
The $30 billion being distributed was authorized under the CARES Act, which was the third COVID-19 economic stimulus bill passed by Congress. The CARES Act designates $100 billion in funding through the Public Health and Social Services Emergency Fund and requires HHS to distribute capital through grants or “other mechanisms” to eligible healthcare entities, which include hospitals and group practices that are experiencing financial losses due to COVID19. Unlike the small business loans authorized under CARES, there are no employer size limitations.
Who is eligible for funds from the initial $30 billion?
Billing entities who received Medicare fee-for-service (FFS) reimbursements in 2019 are eligible for this initial rapid distribution. If your organization qualifies and you will automatically receive payment soon.
How are payment amounts determined?
Providers will receive a portion of the initial $30 billion distribution based on their share of total Medicare FFS reimbursements in 2019. Providers can obtain their 2019 Medicare FFS billings from their organization’s revenue management system.
How will payments be distributed?
HHS is partnering with UnitedHealth Group to deliver funds. You will receive payment within two weeks via Automated Clearing House (ACH). The automatic payments will come via Optum Bank with “HHSPAYMENT” as the payment description. Payments to practices that are part of larger medical groups will be sent to the group’s central billing office. All relief payments are made to provider billing organizations based on their Taxpayer Identification Numbers (TINs).
What action should I take? It is important to understand this required attestation and provide documentation.
Within 30 days of receiving the payment, you must sign an attestation confirming receipt of the funds and agreeing to the terms and conditions of payment. The CARES Provider Relief Payment Portal for signing the attestation will be open the week of April 13, 2020, and access will be posted on the HHS Provider Relief Website.
Additional information will be released related to the remaining $70 billion under the CARES Act to support healthcare providers.
Reach out to our Healthcare Services Team for more information: