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HHS Encourages Providers to Apply for New Phase of COVID Funding

The federal government has announced an additional tranche of $20 billion in COVID relief funding for certain medical providers as part of a Phase 3 General Distributions. The Department of Health and Human Services (HHS) is encouraging all providers who believe they are eligible for the funds to apply as soon as possible to expedite their review and payments.

Phase 3 is targeted for providers who may have already received CARES Act Provider Relief Fund (PRF) payments and are looking to supplement the approximately 2 percent of revenues they have already received in anticipation of further revenue declines.

At this time it is our understanding the funding will not be distributed until after the application deadline of November 6 and HHS has the opportunity to review applications and calculate payments. Any funds not used to bring providers up to a 2 percent of revenue level will then be distributed in the form of an "equitable add-on payment" based on:

  • A provider’s or practice’s decrease in patient care revenues
  • A provider’s or practice’s increase in operating expenses from patient care (includes expenses incurred related to COVID)
  • Payments received through the previous PRF funding rounds

Depending on geography, various private physician practices and dentists continue to see declined volumes and depressed financials. As well, facility and living assistance providers continue to encounter decreased censuses and revenue. While the deadline for applications is November 6, we are encouraging providers who continue to see decreases in patient-related revenue or increases in patient-related expenses to consider applying for the additional relief as soon as possible.

Should you have any questions on this round of PRF funding or previous rounds, please do not hesitate to reach out to a member of our HBK Healthcare Solutions team.

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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