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Today, the Department of Health and Human Services (HHS) announced the fourth round of distributions from the $178 billion Provider Relief Fund (PRF) initially created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act (H.R. 748) in March 2020. This long-awaited announcement comes shortly after the Health Resources & Services Administration (HRSA) created the Provider Relief Bureau to streamline the agency's efforts in managing the PRF. HHS announced today a total of $25.5 billion in COVID relief funds, of which $17 billion will be distributed from the PRF to a broad range of providers - including assisted living providers who have been left out of previous disbursements - to account for provider lost revenues and expenditures associated with responding to the COVID-19 pandemic between July 1, 2020 and March 31, 2021.
Of this $17 billion, HHS indicates that it will allocate 75 percent to provider-based revenue losses and COVID-related expenses, prioritizing medium and small providers as part of the Administration's ongoing commitment to equity. HHS will allocate the remaining 25 percent of the $17 billion distribution of PRF funds for bonus payments based on the amount and type of services provided to Medicare, Medicaid, and CHIP patients.
Today's announcement also includes a distribution of the $8.5 billion provided through the American Rescue Plan (ARP) for rural providers. These funds will be made available for providers who service Medicare, Medicaid, and CHIP beneficiaries who live in rural areas as defined by the Federal Office of Rural Health Policy. Health care providers will be able to apply for funds under both programs using a single application, which will be made available on September 29, 2021.
· Background. In response to burdens on health care providers created by the COVID-19 pandemic, Congress created a $178 billion PRF in stages throughout 2020. HRSA has allocated a majority of the PRF funds to date over the course of several general and targeted distributions. However, pressure has been mounting from both Congress and providers over the last several months to release the funds remaining in the fund to provide additional relief for to the health care community as the COVID-19 pandemic ensues.
In addition to releasing the Phase 4 distribution of PRF funds and the ARP Rural funds, HHS also announced that it will be providing a 60-day grace period for providers who, because of responding to the delta variant of COVID-19, are unable to make meet the September 30, 2021 deadline for reporting PRF payments received between April 10, 2020 through June 30, 2020. While HHS notes that the September 30, 2021 reporting deadline has not changed and that providers who do not submit their reports by this date will be out of compliance, recoupment of payments for failure to report will not be initiated during the 60-day grace period ending on November 30, 2021.
Finally, HHS also released information about the methodology utilized to calculate Phase 3 PRF payments in order to provide greater transparency for providers who believe their Phase 3 payments were calculated improperly. HHS indicates that more information on how to request reconsideration for Phase 3 payments will be issued at a later date.
· What's next? Providers wishing to apply for a portion of the $25.5 billion in COVID relief payments announced today will be able to submit applications on September 29, 2021.
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