The US Department of Health and Human Services (HHS) announced a new opportunity for providers to seek funding through the HHS Provider Relief Fund (PRF). HHS will be accepting applications through November 6, 2020. The department also updated the related FAQs with Phase 3 information; AHCA/NCAL has developed a summary of these updates. 

You can also view specific updates to the HHS PRF FAQs here​.  

The updated FAQs are lengthy. Below are highlights from the October 6 additions. Highlights discussion in the document include:  

• support for providers missing PRF dollars; 
• Phase 3 methodology/formula overview;
• eligibility and receipt of other funding; 
• VBP and PRF; and
• infection control and current staff.

Phase 3 Application Instructions  

Visit the HHS webpage for information on how to apply. All applicants must submit their TIN and financial information to the Provider Relief Fund Application and Attestation Portal . Applicants who submit by Friday, November 6, 2020 at 11:59 pm will be considered for funding.

Providers are encouraged to submit their applications as soon as possible to expedite the calculation and distribution of payments. Providers should apply if they have lost revenues and/or increased expenses attributable to COVID-19 that have not been reimbursed by other sources.

Required documentation:

• Most recent federal income tax return for 2017, 2018, or 2019, unless exempt
• Revenue worksheet (if required by Field 15)
• Operating revenues and expenses from patient care

Note: Providers will need to submit a new application, even if they previously submitted revenue details for a prior PRF distribution; the application has been updated to include some additional data entries in order to calculate payment based on financial impact of COVID-19.

What the Phase 3 Funding Means

Congress allocated $175 billion to HHS for the CARES Act Provider Relief Fund.  As of September 24, HHS had allocated $122.9 billion of those funds. That funding has been divided between:

• General Distributions – Two General Distributions – Phase 1 ($50 billion) and Phase 2 ($18 billion) – distributed through a combination of proactive distributions and application-based awards and
• Targeted Distributions – Proactive distributions to specific provider types – primarily hospitals and nursing homes.

HHS has allocated an additional $20 billion for another General Distribution, which they have deemed “Phase 3 General Distribution.”
 
HHS encourages providers to apply early. The new distribution methodology will take into account other applicants, so HHS will not be able to calculate full awards until it has received and reviewed all applications.  
 
Virtually all health care providers should be eligible to apply for funding in this distribution. Even those providers who received funding previously may be newly eligible for consideration.  

Key Parameters of the New Distribution

The new distribution is application-based. Interested providers will be required to apply as opposed to receiving a proactive distribution from HHS. HHS will accept applications from October 5 through November 6.

The application will be open to: 

• providers who have previously received, accepted, or rejected funding through the Provider Relief Fund,
• behavioral health providers (some had previously been excluded for methodological reasons), and
• providers newly practicing in 2020 (previously excluded for methodological reasons).
  

Distribution Methodology

Two Percent of Patient Care Revenue – HHS will review each application to ensure providers have received two percent of their annual patient care revenue, taking into account previous distributions from the Provider Relief Fund. This methodology is consistent with the most recent General Distribution Phase 2, for which applications closed on September 13. 

“Equitable Add-On Payment” – HHS indicates it will use the remainder of the $20 billion (after ensuring all applicants have 2% of annual patient care revenue) to calculate an “equitable add-on payment” for all applicants, reflecting:

• 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 coronavirus, and
• payments already received through prior Provider Relief Fund distributions.

For updates and to learn more about the Provider Relief Program, visit: www.hhs.gov/providerrelief.