The U.S. Department of Health and Human Services (HHS) has announced an additional $413 million in Phase 4 Provider Relief Fund (PRF) payments to be distributed to more than 3,600 healthcare providers. The timing of the distribution was not announced, but HHS said that the new release means that approximately 89 percent of Phase 4 applications have been processed.

The announcement follows nearly $9 billion released by HHS in December 2021 and another $560 million to COVID-impacted providers in February 2022. Overall, the Department said, it has distributed nearly $12 billion in Phase 4 payments to more than 82,000 healthcare providers since November 2021.

Provider Relief Fund payments are designed to help healthcare providers whose operations have been negatively impacted by the variants of the COVID-19 pandemic. According to the agency, 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.” The agency also noted that Phase 4 payments are intended to reimburse Medicare and Medicaid providers for lost revenues and increased expenses at a higher rate compared to larger providers.

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

The Health & Human Services Department announced Friday, January 15 that it is pushing back the date for Provider Relief Fund Program (PRF) recipients to begin submitting their reporting on their use of PRF funds. Instead, PRF recipients can begin registering today for gateway access to the Reporting Portal where they will ultimately submit their information in compliance with the new HHS reporting requirements.

HHS previously planned to open the Reporting Portal by January 15, with the first deadline for submissions being February 15, 2021. However, the Coronavirus Response and Relief Supplemental Appropriations Act passed in December adding another $3 billion to the $175 billion in the Provider Relief Fund section of the CARES Act included language specific to reporting requirements. The HHS reporting timeline change is the department’s effort to “give recipients ample time to familiarize themselves with the updated reporting requirements well in advance of required submission deadlines.”

HHS said it is “encouraging all PRF recipients that have received aggregate PRF payments that exceed $10,000 to establish a reporting account by registering at the newly enabled PRF reporting website.” While it did not set a new timeline for providers to establish a reporting account in the Reporting Portal, it does require providers to complete the step to “advance and fulfill their reporting requirements once HHS announces the new deadline to do so.”

To access the Reporting Portal, go to: https://prfreporting.hrsa.gov/s/

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.

HBK’s Healthcare Solutions team, Kyle Courthamel, Michael Byrwa and Matthew Hendricks discuss the various HHS COVID-19 stimulus funding packages and how our firm is assisting healthcare clients in the accounting, reporting, compliance, planning and preparation for audit aspects of the funds.

What You Can Learn:
How to report the use of the funds to HHS/HRSA
What the HHS funds can be used for
What clients need to do now in advance of the reporting deadline
Tax and strategic planning opportunities surrounding the reporting requirements

Download the materials.