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Additional Provider Relief Fund Payments Now Available

The U.S. Department of Health and Human Services (HHS), has announced an additional $20 billion in funding that is being made available to providers on the frontlines of the coronavirus pandemic. This 3rd Phase of the General Distribution is available to healthcare providers, even if they have already received Provider Relief Fund payments through Phase 1 or Phase 2 of the HHS Provider Relief Fund’s General Distribution. Providers can begin applying for funds on October 5, and will have until November 6, 2020 to submit their application for additional funding. This round of funding takes into consideration both financial losses and changes in operating expenses caused by COVID-19. Providers who have not been eligible for the previous rounds of the General Distribution, such as those who began practicing in 2020, will also be invited to apply.

HHS has already issued over $100 billion in relief funding to providers through prior distributions. Still, HHS recognizes that many providers continue to struggle financially from COVID-19’s impact. For eligible providers, the new Phase 3 General Distribution is designed to balance an equitable payment of 2 percent of annual revenue from patient care for all applicants, plus an add-on payment to account for revenue losses and expenses attributable to COVID-19.

The following providers will be eligible to apply for additional funding:

  • Providers who previously received, rejected or accepted a General Distribution Provider Relief Fund payment. Providers that have already received payments of approximately 2% of annual revenue from patient care may submit more information to become eligible for an additional payment.
  • Behavioral Health providers, including those that previously received funding and new providers.
  • Healthcare providers that began practicing January 1, 2020 through March 31, 2020. This includes Medicare, Medicaid, CHIP, dentists, assisted living facilities and behavioral health providers.

The following criteria will be used to determine a provider’s eligibility for additional payment:

  • All provider submissions will be reviewed to confirm they have received a Provider Relief Fund payment equal to approximately 2 percent of patient care revenue from prior general distributions. Applicants that have not yet received Relief Fund payments of 2 percent of patient revenue will receive a payment that, when combined with prior payments (if any), equals 2 percent of patient care revenue.
  • With the remaining balance of the $20 billion budget, HRSA will then calculate an equitable add-on payment that considers the following:
    • 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
    • Payments already received through prior Provider Relief Fund distributions.

HHS has said that this distribution requires cooperation on the part of all applicants, and is urging all eligible providers to apply as early as possible; do not wait until the last day or week of the application period. Applying early will help to expedite HHS’s review process and payment calculations, and ultimately accelerate the distribution of all payments. As with the previous 2 phases of the General Distribution, providers will be required to attest to receiving the Phase 3 General Distribution payment and accept the associated Terms and Conditions.

Providers will have until November 6, 2020 to apply for Phase 3 General Distribution funding. HHS will continue to host webinars to assist providers through the application process and the call center is also available to address questions. The phone # for the HHS call center is 866-569-3522.

Click here read the full release regarding this new Phase 3 of the Provider Relief Fund, please visit: As always, please contact Craig Douglas  or Mark Higley if you have any questions regarding this new Phase 3, or any previous phase of the HHS Provider Relief Fund.

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