Male pediatrician talking to his little patient who is standing next to his mom

HHS Releases Grant Money to Medicaid Providers

On June 9, the Department of Health and Human Services (HHS) announced the distribution of an additional $15 billion from the Provider Relief Fund to Medicaid and Children’s Health Insurance Program (CHIP) providers. The distribution is intended to make supply relief available to the 38 percent of Medicaid and CHIP providers who did not receive payments in the initial General Distribution of Provider Relief Fund Payments in April and May.

Eligible providers include, but are not limited to, assisted living facilities, pediatricians, obstetrician-gynecologists, dentists, opioid treatment providers, and behavioral health clinicians. These monies, like the General Distribution, are extended as a grant that requires recipients to meet HHS compliance criterion.

To be eligible, providers must have:

  • Not received payments from the $50 billion Provider Relief Fund General Distribution, and
  • Directly billed their state Medicaid/CHIP program or Medicaid managed care plans for healthcare-related services between January 1, 2018 to May 31, 2020

Eligible providers who submit an application will receive a payment equal to at least 2 percent of their reported gross revenue from patient care. The application deadline is July 20, 2020.

The provider should have the following available for the application:

  • “Gross Receipts or Sales” or “Program Service Revenue” as submitted on its federal income tax return broken out by payer mix
  • Estimated revenue losses in March 2020 and April 2020 due to COVID-19
  • Copy of the most recently filed federal income tax return
  • Listing of the Tax Identification Numbers of subsidiary organizations that do not file separate tax returns
  • Copy of IRS Form 941 or 940 for the first quarter of 2020

If you have any questions, HBK’s Healthcare Solutions team is here to help. Feel free to contact us at (330) 758-8613 or email me directly at kcrouthamel@hbkcpa.com.

About the Author(s)
Kyle Crouthamel is a Senior Manager in HBK’s Youngstown office. His experience includes attestation engagements and consulting in the healthcare and not-for-profit industries. He also works on cost reporting engagements and has focused experience in those related to Medicare and Ohio Medicaid.
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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