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$30 billion Released for Healthcare Providers and Facilities

The U.S. Department of Health and Human Services has begun distributing $30 billion in relief funding to healthcare providers. The money is part of the $100 billion designated for healthcare providers and organizations in the CARES Act. The news of the distributions was released today, April 10, by HHS as the first payments were arriving in providers’ accounts—or the central billing accounts for provider groups. The money is considered the first tranche of the $100 billion; expectations are for the additional tranches to be designated for hospitals, other providers, and to provide enhanced support in rural or otherwise under-served communities. The funds are cash payments, not loans, and do not need to be repaid. Nor do they affect applications for or participation in other COVID-19 relief programs, including the Families First Coronavirus Response Act, the Paycheck Protection Program under the CARES Act, and Centers for Medicare and Medicaid Services (CMS) Accelerated and Advance Payment Program. Eligibility is restricted to providers and facilities that receive Medicare fee-for-service (FFS) reimbursements and is determined by their 2019 Medicare FFS reimbursement totals. HHS paid $484 billion in Medicare FFS reimbursements last year, making the $30 billion being distributed slightly above 6 percent of that amount. A provider can estimate their payment by dividing their 2019 Medicare FFS payments received, excluding Medicare Advantage, by $484 billion, and multiplying that amount by $30 billion. We have received early reports that providers are receiving up to 9 percent of their 2019 Medicare FFS reimbursement totals. Providers must attest to receiving the funds and agree to the HHS terms and conditions within 30 days of receipt of payment (see https://www.hhs.gov/sites/default/files/relief-fund-payment-terms-and-conditions-04092020.pdf). Note, the HHS will open these attestation submissions the week of April 13, 2020. As well, providers must agree not to seek collection of out-of-pocket payments from a 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. We’re here to help. Call us with your questions or concerns at 239-482-5522; or email me at mdeluca@hbkcpa.com. For more details from HHS, visit https://www.hhs.gov/provider-relief/index.html.
About the Author(s)
Michael DeLuca is a Principal in the Southwest Florida offices of HBK CPAs & Consultants, and Director of the HBK Healthcare Solutions Group. He joined the firm in 2013. Michael is experienced in navigating the strategic and financial matters associated with healthcare practices and works closely with many specialty providers to help them plan, execute, and meet their short- and long-term financial goals.
Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.

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