Beginning October 5, 2020, the United States Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), opened Phase 3 of the General Distribution of the Provider Relief Fund (PRF). Phase 3 includes $20 billion in new funding for providers on the frontlines of the COVID-19 pandemic. Providers have until November 6, 2020, to apply for additional funding.
While HHS has already issued over $100 billion in relief funding to providers through prior distributions, the agency recognizes that many providers continue to struggle financially from COVID-19. For eligible providers, the new Phase 3 General Distribution is designed to balance an equitable payment of 2 percent of annual revenue from patient care for all applicants plus an add-on payment to account for revenue losses and expenses attributable to COVID-19.
Who is Eligible?
Previously ineligible providers, including new providers and an expanded group of behavioral health providers will be able to apply. A large number of providers are eligible for the Phase 3 General Distribution Funding, including:
- Providers who previously received, rejected, or accepted a General Distribution Provider Relief Fund payment. If a provider has already received payments of roughly 2% of annual revenue from patient care, they can submit more information to become eligible for an additional payment.
- Health care providers that began practicing between January 1, 2020, and March 31, 2020. New providers can include Medicare, Medicaid, CHIP, dentists, assisted living facilities, and behavioral health providers.
- Behavioral health providers, including those that previously received funding and new providers.
How Are Payments Calculated?
Payments are calculated based on a provider’s annual gross revenue for the most recently completed federal income tax year. Applications in Phase 3 will be reviewed to confirm that the provider has already received a PRF payment equal to approximately 2% of patient care revenue from prior general distributions. If an applicant has not yet received PRF payments that total 2% of patient revenue, they should expect a payment that will equal 2% of patient care revenue when combined with any prior payments. If no prior PRF payment has been accepted, the provider should receive payment that totals 2% of patient care revenue.
If there is any remaining funds in the $20 billion budget, HHS will calculate equitable add-on payments that consider several factors, including: a provider’s change in operating revenues from patient care; a provider’s change in operating expenses from patient care, including expenses incurred related to COVID-19; and payments already received through prior PRF distributions.
How to Apply
HHS is encouraging applicants to apply early – do not wait until the last day of the application period, as early applications can help expedite HHS’s review process and payment calculations, and ultimately accelerate the distribution of payments.
It is expected that these distributions will also be subject to the same reporting requirements that prior PRF payments are subject to.
For additional information click here.