The U.S. Department of Health and Human Services (HHS) has announced an additional $2 billion in Phase 4 Provider Relief Fund (PRF) payments will be distributed to more than 7,600 U.S. providers. The distribution follows nearly $9 billion released by HHS in December 2021 and brings the total funding to providers through the PRF and American Rescue Plan to more than $18 billion over the past three months.

In its January 25 release, the HHS characterized its Phase 4 payments as “reimbursing a higher percentage of losses for smaller providers and incorporating ‘bonus’ payments for providers who serve Medicaid, Children’s Health Insurance Program (CHIP), and Medicare beneficiaries,” adding that “approximately 82 percent of all Phase 4 applications have now been processed.” Provider Relief Fund payments are designed to help healthcare providers whose operations have been negatively impacted by the variants of the COVID-19 pandemic. The funds are intended to help providers “to remain in operation and to continue supporting patient care by covering a variety of costs including personnel, recruitment and retention initiatives, medical supplies, information technology, and many other functions,” noted the HHS release.

“Provider Relief Fund payments have served as a lifeline for our nation’s heroic health care providers throughout the pandemic, helping them to continue to recruit and retain staff and deliver care to their communities,” noted HHS Secretary Xavier Becerra. “This funding is just the latest example of the Biden-Harris administration’s dedication to ensuring that providers continue to have the resources they need to meet the evolving challenges presented by COVID-19 and keep providing critical services to the American people.”

For more information on the Phase 4 funding or 0ther provider relief funding, call HBK Healthcare Solutions at (330) 758-8613 or contact us by email at jzarlenga@hbkcpa.com

Late Friday, July 31, the Department of Health and Human Services (HHS) extended the application deadline for Phase 2 general distribution of CARES Act funds for Medicaid, CHIP and dental providers. The deadline, first extended to Monday, August 3, now extends to Monday, August 28, allowing eligible providers additional time to prepare and file their applications.

Along with the extension, HHS released two additional key provisions:

1. A new application would allow certain Medicare providers a second chance for relief funds of up to 2 percent of their annual patient revenues. In April, many of these Medicare providers received automatic payments based on their 2019 Medicare fee-for-service revenue. In the event this payment did not reach the intended goal of 2 percent of that practice’s annual revenues, providers could have applied for additional funding. Beginning the week of August 10, HHS will allow these Medicare providers—including private physician practices, facilities, etc.—who previously missed the opportunity to apply for additional funding. These applications will also be due by Monday, August 28.
2. HHS relied on 2019 data to determine the automatic payments in the original round of funding. In the event a provider or provider practice had a change in ownership in 2020, these payments might have gone to the original owners. Beginning the week of August 10, providers that did not receive funding due to a change in ownership may submit their revenue information, along with documentation proving a change in ownership, by August 28 for consideration for a Provider Relief Fund payment.



The HHS said it is working to address relief payments to new providers in 2020 along with those that have yet to receive funding for a variety of reasons. Those yet to receiving funding include providers that only bill commercially or do not directly bill for the services they provide under the Medicare and Medicaid programs.

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.