Healthcare providers that have already received coronavirus relief payments through the Provider Relief Fund can apply for additional funding starting Monday.
The Department of Health and Human Services announced Thursday that an additional $20 billion in Phase 3 Provider Relief funding for operators that have experienced financial losses and changes in operating expenses caused by the coronavirus pandemic.
The funding will be made available to all providers, who can first apply for the funds Monday. The application deadline is Nov. 6.
“HHS is urging all eligible providers to apply early; 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,” the department warned.
A total of $175 billion in payments has been allocated for distribution through the fund — with $100 billion of that already being distributed in previous phases.
Payment methodology
HHS noted that providers’ payments will be based on approximately 2% of patient care revenue from prior general distributions. Those who have not yet received payments of 2% of patient revenue will then receive a payment that, when combined with prior payments (if any), equals 2% of patient care revenue.
The department will then calculate an equitable add-on with the remaining balance of the $20 billion in funding. To calculate the add-on it will use a provider’s change in operating revenues from patient care; change in expenses from patient care, including expenses incurred related to coronavirus; and payments already received through prior Provider Relief Fund distributions.
LeadingAge noted this will be the first time providers that opened in the first three months of 2020 will be eligible to apply for relief dollars. The organization added these operators have had “the same challenges in paying for personal protective equipment and testing, and lost revenues.”
The group also said another positive is that providers who have already received up to 2% of annual patient care revenue in relief funds are able to apply for additional payments, “which recognizes that some providers have been extremely hard hit by the pandemic.”
Eligibility provisions
Eligibility extends to those who have previously received, rejected or accepted relief payment from the fund; behavioral health providers, including those that have already received funding; and healthcare providers began practicing Jan. 1, 2020, through March 31, 2020.
“This includes Medicare, Medicaid, CHIP, dentists, assisted living facilities and behavioral health providers,” HHS explained.
“The additional costs borne by our members as a result of the pandemic is significant, and will continue to grow for the foreseeable future,” noted Nicole Fallon, vice president of health policy and integrated services at LeadingAge.
“Help such as this is welcome and necessary to ensure the care of and well-being of older adults and staff, and we appreciate HHS’ efforts to get these relief funds to those who have the greatest needs,” she added.
The American Health Care Association/National Center for Assisted Living applauded the administration for the move, saying it gives long-term care and other providers the “additional opportunity to access funding to assist with addressing COVID as well lost revenue.”
“As the virus shows no signs of letting up, nursing homes and assisted living communities require a constant flow of resources to acquire the testing, personal protective equipment and staff support needed to protect residents and staff,” the association said in a statement.
“We also appreciate HHS acknowledging that lost revenue due to COVID puts our long-term care facilities at further financial risk, threatening access to seniors and individuals with disabilities who require round-the-clock care. With more than half of long-term care providers operating at a loss, this funding is an important lifeline to tens of thousands of facilities during an especially challenging time,” it added.
