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
- Revenue worksheet provided by HHS
- Operating revenue and expenses from patient care
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.
If you have any questions about the topic discussed above, please do not hesitate to contact one of our Healthcare Specialists below.
About Traci Getz
Partner & CPA
Traci is a partner with Ryan & Wetmore, PC and is based in our Frederick, MD office. The Frederick office is home to the firm’s small business services department. Traci currently works with clients on individual, corporate, and tax compliance issues along with a variety of accounting and consulting services for small and medium-sized business owners.
About Pete Ryan
Co-Founder & Partner
Peter T. Ryan co-founded Ryan & Wetmore in 1988 with business partner Michael J. Wetmore. Peter provides clients with the best strategies for success. His expertise extends across various industries, including healthcare. Peter obtained a Master of Business Administration in Finance from the University of Baltimore and a Bachelor of Arts in Accounting from the Catholic University of America.
About Tu Nguyen
Senior Finance Consultant
Tu Nguyen holds the position of Senior Finance Consultant at Ryan & Wetmore, P.C., where she primarily works with clients on business consulting, financial planning & analysis, mergers & acquisitions, and various healthcare projects. Tu earned her M.A. degree in Economics from Johns Hopkins University and a B.A. in Economics and Mathematics from Lake Forest College in Illinois.