New Funding for the Provider Relief Fund

From MGMA

Today, HHS has announced that applications will be accepted beginning on Monday, Oct. 5 for $20 billion in new funding under Phase 3 of the PRF General Distribution allocation. Under this new phase, providers that have already received Provider Relief Fund payments will be invited to apply for additional funding that considers financial losses and changes in operating expenses caused by the coronavirus. Previously ineligible providers, such as those who began practicing in 2020 will also be invited to apply, and an expanded group of behavioral health providers will also be eligible for relief payments.

Deadline: Providers will have from Monday Oct. 5 through Nov. 6 to apply, however HHS is encouraging early application to “expedite [its] review process and payment calculations.”

Eligibility

• Providers who previously received, rejected or accepted a General Distribution Provider Relief Fund payment. Providers that have already received payments of approximately 2% of annual revenue from patient care may submit more information to become eligible for an additional payment.
  • Importantly, even if you already received payments of approximately 2% of annual revenue from patient care, you may submit more information to become eligible for an additional payment.
• Behavioral Health providers, including those that previously received funding and new providers.
• Healthcare providers that began practicing January 1, 2020 through March 31, 2020. This includes Medicare, Medicaid, CHIP, dentists, assisted living facilities and behavioral health providers.

Payment Methodology

1. All provider submissions will be reviewed to confirm they have received a Provider Relief Fund payment equal to approximately 2 percent of patient care revenue from prior general distributions. Applicants that have not yet received Relief Fund payments of 2 percent of patient revenue will receive a payment that, when combined with prior payments (if any), equals 2 percent of patient care revenue.
2. With the remaining balance of the $20 billion budget, HRSA will then calculate an equitable add-on payment that considers the following:
   1. A provider’s change in operating revenues from patient care
   2. A provider’s change in operating expenses from patient care, including expenses incurred related to coronavirus
   3. Payments already received through prior Provider Relief Fund distributions.

We (MGMA) expect to see more information released by HHS over the coming days which we expect will be posted to the Provider Relief Fund website. We will communicate those details to members as they are made available.