CARES Act Provider Relief Fund FAQs undergo another update as of August 14

• The U.S. Department of Health & Human Services (HHS) has delayed posting guidance (originally to be posted by Aug. 17) on what CARES Act Provider Relief Fund recipients will need to report to support/determine how much of the funds providers are entitled to keep.
• The updated FAQs underwent additional extensive updates related to the announced Phase 2 General Distribution, so it is important that healthcare organizations review them again.
• Even providers who have received a payment under Phase 1 of the General Distribution can now submit an application under Phase 2 of the General Distribution.

The U.S. Department of Health & Human Services (HHS) was scheduled to post guidance by Aug. 17 on what CARES Act Provider Relief Fund (PRF) recipients will need to report to support/determine how much of the funds providers are entitled to keep. However, over the weekend, references to the Monday, Aug. 17 deadline were removed from the HHS website as was a pdf announcement of the reporting requirements. Now, there is no release date. However, the website continues to say the reporting portal will be open Oct. 1. HFMA will continue monitoring this and post additional information as it becomes available.

The updated FAQs underwent additional extensive updates related to the announced Phase 2 General Distribution. According to HHS, to be eligible to apply providers must meet the following requirements:

a. Must have either (i) directly billed their state Medicaid/CHIP programs or Medicaid managed care plans for healthcare-related services during the period of January 1, 2018, to December 31, 2019, or (ii) own (on the application date) an included subsidiary that has either directly billed their state Medicaid/CHIP programs or Medicaid managed care plans for health care-related services during the period of January 1, 2018, to December 31, 2019; or

b.  Must be a dental service provider who has either (i) directly billed health insurance companies for oral health care-related services, or (ii) owns (on the application date) an included subsidiary that has directly billed health insurance companies for oral health care-related services; or

c.  Must be a licensed dental service provider who does not accept insurance and has either (i) directly billed patients for oral health care-related services, or (ii) who owns (on the application date) an included subsidiary that does not accept insurance and has directly billed patients for oral health care-related services;

d.  Must have billed Medicare fee-for-service during the period of January 1, 2019 and December 31, 2019; or

e.  Must be a Medicare Part A provider that experienced a change in ownership and billed Medicare fee-for-service in 2019 and 2020 that prevented the otherwise eligible provider from receiving a Phase 1 General Distribution payment.

They also must have either:

•  (i) filed a federal income tax return for fiscal years 2017, 2018 or 2019 or
•  (ii) be an entity exempt from the requirement to file a federal income tax return and have no beneficial owner that is required to file a federal income tax return. (e.g. a state-owned hospital or health care clinic); and
  • Must have provided patient care after January 31, 2020; and
  • Must not have permanently ceased providing patient care directly, or indirectly through included subsidiaries; and
  • If the applicant is an individual, have gross receipts or sales from providing patient care reported on Form 1040, Schedule C, Line 1, excluding income reported on a W-2 as a (statutory) employee.

Providers who have received a payment under Phase 1 of the General Distribution are no longer prohibited from submitting an application under Phase 2 of the General Distribution. Providers who received a previous Phase 1 General Distribution payment are eligible to apply and, if they have not yet received a payment that is approximately 2% of annual revenue from patient care, may receive additional funds.

Takeaway

If you think your organization qualifies, you will want to review the FAQs as all of the material additions/updates as of Aug. 14 at 7:30 am ET apply to the Phase 2 General Distribution.

For providers who received a Phase 1 General Distribution payment that was less than 2% of revenue from patient care, they must meet the revised eligibility requirements for the Phase 2 General Distribution and follow the application instructions available for the distribution.

Applicants should use the Provider Relief Fund Application and Attestation Portal to apply for funds. Probably the fastest way to review the document is to search for added 8/ and separately for modified 8/.