Coronavirus Update: HHS Announces Details on Additional General Distribution of CARES Act Provider Relief Funds

Coronavirus Update
October 1, 2020

 

The Department of Health and Human Services (HHS) today announced the forthcoming distribution to all hospitals, as well as other providers, of $20 billion in funds from the Public Health and Social Services Emergency Fund

Under this third general distribution, eligible hospitals will be able to apply for additional payments that consider COVID-19-related financial losses and changes in operating expenses. The application period is open Oct. 5 through Nov. 6.

Given the information below, the AHA strongly encourages members to apply for this funding as soon as possible.

Eligibility. Hospitals and providers eligible to apply for this third general distribution include:

  • those who previously received, rejected or accepted a General Distribution provider relief fund payment (including providers who have already received payments of approximately 2% of annual patient care revenue – they may submit more information to become eligible for an additional payment);
  • behavioral health providers, including those that previously received funding and new providers; and
  • providers who began practicing between Jan. 1, 2020, and March 31, 2020.

Payment Methodology. HHS has outlined the following methodology for the funds’ distribution to applicants:

  • any providers that have not yet received relief fund payments equal to at least 2% of patient care revenue will receive a payment that, when combined with prior payments (if any), equals 2% of patient care revenue;
  • using any remaining balance of funds, if any, HHS will make “equitable” add-on payments with the following considerations:
    • changes in operating revenues from patient care;
    • providers’ changes in operating expenses from patient care, including incurred expenses related to COVID-19; and
    • payments already received through provider relief fund distributions.

HHS urges applicants to submit early in order to expedite the agency’s review process and payment calculations; HHS says this will ultimately accelerate all payments’ distribution.

All payment recipients will be required to attest to receiving phase 3 general distributions payments and accept any associated terms and conditions.

Background
The Coronavirus Aid, Relief, and Economic Security (CARES) Act and Paycheck Protection Program and Health Care Enhancement Act included $175 billion in the Public Health and Social Services Emergency Fund to reimburse health care providers for health care-related expenses or not-otherwise-reimbursed lost revenues that are attributable to COVID-19.

Further Questions
If you have questions, please contact AHA at 800-424-4301.

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