HHS Issues $20 Billion in Phase 3 Provider Relief Funding
Earlier this month, the Trump Administration announced that an additional $20 billion will be made available for healthcare providers who are on the first line of defense against the coronavirus. A range of providers will be able to apply for this funding starting on October 5th, 2020 including previously ineligible providers. This round of funding considers financial losses and changes in operating revenues and expenses caused by the coronavirus. Furthermore, providers who have already received PRF dollars are still encouraged to apply to Phase 3 for additional payment opportunities.
Which Providers Can Apply to Phase 3 of PRF?
Below is a list of medical providers who are currently being invited to apply to the new Phase 3 funding:
Providers that just began practicing January 1st, 2020 – March 31st, 2020, including Medicare, Medicaid, CHIP, dentists, assisted living facilities, and behavioral health providers
Behavioral health providers
Providers that previously received or denied a General Distribution Provider Relief Fund
Phase 3 PRF Payment Details
The Phase 3 General Distribution payments are configured to “balance an equitable payment of 2% of annual revenue for patient care for all applicants” for those who did not previously receive this amount from prior fundings (HHS).
In the event that there is a remaining balance in the Phase 3 budget of $20 billion, the Health Resources and Services Administration (HRSA) will “calculate an equitable add-on payment” that takes into account providers’ change in operating revenues, operating expenses including expenses incurred related to coronavirus and funding already received to date through PRF.
The following financial information is required to be submitted with the application:
Most recent federal income tax return for 2017, 2018, or 2019, unless exempt
As mentioned earlier, the application window for Phase 3 funding opened on October 5th, 2020 and applicants will have until November 6th, 2020 to apply. As always, submit an application early to avoid delays in payment distribution.
To learn more about the application process, review the fact sheet for quick information or download the presentation provided by HHS explaining the steps to apply for funding.
If you have any questions about the topic discussed above, please do not hesitate to contact one of our Healthcare Specialists below.
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