The Department of Health and Human Services (HHS) Announces $20 Billion in New Phase 3 Provider Relief Funding

Jackie Pappalardi Lisa Volk Carl Pucci in Clinical & Quality, Finance & Reimbursement

The Department of Health and Human Services (HHS), is announcing $20 billion in new funding for providers on the frontlines of the coronavirus pandemic. Under this Phase 3 General Distribution allocation, Providers may be eligible regardless of whether they were eligible for, applied for, received, accepted, or rejected payment from prior PRF distributions including providers 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. Previously ineligible providers, such as those who began practicing in 2020 will also be invited to apply, and an expanded group of behavioral health providers confronting the emergence of increased mental health and substance use issues exacerbated by the pandemic will also be eligible for relief payments.

Providers can begin applying for funds today and are encouraged to apply early.  Providers will have from October 5, 2020 through November 6, 2020 to apply for Phase 3 General Distribution funding.

A large number of providers are eligible for Phase 3 General Distribution funding, including:

  • 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 January 1, 2020 through March 31, 2020. This includes Medicare, Medicaid, CHIP, dentists, assisted living facilities and behavioral health providers.

Payment Methodology – Apply Early

All eligible providers will be considered for payment against the criteria below:

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

Providers want to receive payments shortly after submitting their information. However, HHS indicates that this distribution requires cooperation on the part of all applicants. Again, HHS is urging all eligible providers to apply early; do not 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.

HHS will continue to host webinars to assist providers through the application process and the call center is also available to address questions.  

While on a call with our National Affiliates today at noon, the following information was provided to us: 

Phase 3 Webpage: https://www.hhs.gov/coronavirus/cares-act-provider-relief-fund/for-providers/index.html#how-to-apply 

3.    Apply for Funding - All applicants must submit their TIN and financial information to the Provider Relief Fund Application and Attestation Portal . Applicants who submit by Friday, November 6, 2020 at 11:59 p.m. ET will be considered for funding.

Providers are encouraged to submit their applications as soon as possible to expedite the calculation and distribution of payments. Providers should apply if they have lost revenues and/or increased expenses attributable to COVID-19 that have not been reimbursed by other sources.

Required documentation:

  • Most recent federal income tax return for 2017, 2018, or 2019, unless exempt
  • Revenue worksheet (if required by Field 15)
  • Operating revenues and expenses from patient care

Note: Providers will need to submit a new application, even if they previously submitted revenue details for a prior Provider Relief Fund distribution; the application has been updated to include some additional data entries in order to calculate payment based on financial impact of COVID-19.

NYSHFA/NYSCAL CONTACTS:

Jackie Pappalardi, RN, BSN
Executive Director
518-462-4800 x16

Lisa Volk, RN, B.P.S., LNHA
Director, Clinical & Quality Services
518-462-4800 x15

Carl J. Pucci
Chief Financial Officer
518-462-4800 x36