The Department of Health and Human Services (HHS) recently announced that they added $20 billion to the Provider Relief Fund (PRF) as part of phase 3 efforts to support healthcare organizations during this very trying year. Those who have previously applied for funding can apply for additional funds if they qualify.
According to the Centers for Disease Control, by the end of September, nearly 500 people per 100,000 will be hospitalized due to COVID-19. And according to the Financial Times, Texas recently overtook California in COVID-19 deaths. The challenges are expected to continue through the end of the year and possibly into the next.
Is Your Organization Eligible?
Phase 3 includes the number of health organizations eligible for funding. Eligible healthcare providers now include the following in addition to those who previously qualified:
- Behavioral health providers,
- Healthcare providers who started practicing in 2020, and
- Those who already received, or were rejected for, payments from the General Distribution Provider Relief Fund.
How It Works
The HHS is strongly encouraging that eligible entities apply well before the November 6 deadline. The initial step in the process is to verify the entity’s TIN, which can take some time. Once the application is approved, applicants will receive what represents 2% of patient fees. As a general rule, this is measured based on 2019 revenue. For businesses who started in 2020, the 2% will be calculated on 2020 quarterly financials. Then, once the application deadline of November 6 has passed, the HHS will revisit all phase 3 applications and allocate a second batch of financial relief based on need and the amount of funds available for distribution.
You can find additional information atthe HHS.gov Cares Act Provider Relief Page.
Provider Relief Funding Phase 3 Deadline is November 6, 2020.
If your organization may qualify for these funds, we encourage you to consider the potential benefits along with the potential negatives. If you have questions, our team of healthcare experts is one call away. Reach out to speak with someone.