The U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), announced $20 billion for a new Phase 3 distribution for the Provider Relief Fund for provider organizations who treat those with coronavirus disease 2019 (COVID-19). Under this Phase 3 General Distribution allocation, provider organizations that have already received Provider Relief Fund payments will be invited to apply for additional funding that considers financial losses and changes in operating expenses caused by the coronavirus. Applications opened on October 5, 2020, and will close November 6, 2020.
Provider organizations that are eligible for Phase 3 General Distribution funding include:
- Provider organizations that previously received, rejected, or accepted a General Distribution Provider Relief Fund payment. Provider organizations that have already received payments of approximately 2% of annual revenue from consumer care may submit more information to become eligible for an additional payment.
- Behavioral health provider organizations, including those that previously received funding and new provider organizations.
- Health care provider organizations that began practicing January 1, 2020 through March 31, 2020. This includes Medicare, Medicaid, CHIP, dentists, assisted living facilities, and behavioral health provider organizations.
All eligible provider organizations will be considered for payment against the following criteria:
- All provider submissions will be reviewed to confirm they have received a Provider Relief Fund payment equal to approximately 2% of consumer care revenue from prior general distributions. Applicants that have not yet received Relief Fund payments of 2% of consumer revenue will receive a payment that, when combined with prior payments (if any), equals 2% of consumer care revenue.
- With the remaining balance of the $20 billion budget, HRSA will then calculate an equitable add-on payment that considers a provider’s change in operating revenues from consumer care; a provider’s change in operating expenses from consumer care, including expenses incurred related to COVID-19; and payments already received through prior Provider Relief Fund distributions.
HHS has already issued more than $100 billion in relief funding to provider organizations through prior distributions. Still, HHS recognizes that many provider organizations continue to struggle financially from COVID-19’s impact on consumer volume and on costs to limit the spread of COVID-19. For eligible provider organizations, the new Phase 3 General Distribution is designed to balance an equitable payment of 2% of annual revenue from consumer care for all applicants plus an add-on payment to account for revenue losses and expenses attributable to COVID-19.
HHS is urging all eligible provider organizations to apply early rather than wait until the last day or week of the application period. Applying early will help to expedite HHS’s review process and payment calculations, and ultimately accelerate the distribution of all payments. All payment recipients will be required to attest to receiving the Phase 3 General Distribution payment and accept the associated Terms and Conditions.
This was reported by the U.S. Department of Health and Human Services (HHS) on October 1, 2020.
Contact information: U.S. Department of Health and Human Services, 200 Independence Avenue Southwest, Washington, District of Columbia 20201; 202-690-6343; Email: firstname.lastname@example.org; Website: https://www.hhs.gov/providerrelief