Healthcare

August 28 Deadline for Phase 2 Funding Under CARES Act’s Provider Relief Fund

On July 31, 2020, the U.S. Department of Health and Human Services (HHS) granted another opportunity for healthcare providers to apply for the Provider Relief Fund (PRF) under Phase 2, aimed at reimbursing eligible healthcare-related expenses and lost revenues attributable to COVID-19.

Healthcare providers who have already received a payment under Phase 1 of the PRF are still eligible to apply for additional funds under Phase 2, as long as they have not yet received a payment that is approximately 2% of annual revenue from patient care.

Eligible providers may submit their application by August 28, 2020 for Phase 2 funding.

 

To be eligible to apply, you must meet the following requirements:

  1. Either:
    • Must have either (i) directly billed their state Medicaid/CHIP programs or Medicaid managed care plans for health care-related services during the period of January 1, 2018, to December 31, 2019, or (ii) own (on the application date) an included subsidiary that has either directly billed their state Medicaid/CHIP programs or Medicaid managed care plans for health care-related services during the period of January 1, 2018, to December 31, 2019; or
    • Must be a dental service provider who has either (i) directly billed health insurance companies for oral health care-related services, or (ii) owns (on the application date) an included subsidiary that has directly billed health insurance companies for oral health care-related services; or
    • Must be a licensed dental service provider who does not accept insurance and has either (i) directly billed patients for oral health care-related services, or (ii) who owns (on the application date) an included subsidiary that does not accept insurance and has directly billed patients for oral health care-related services;
    • Must have billed Medicare fee-for-service during the period of January 1, 2019 and December 31, 2019; or
    • Must be a Medicare Part A provider that experienced a change in ownership and billed Medicare fee-for-service in 2019 and 2020 that prevented the otherwise eligible provider from receiving a Phase 1 – General Distribution payment.

 

  1. Must have either (i) filed a federal income tax return for fiscal years 2017, 2018 or 2019 or (ii) be an entity exempt from the requirement to file a federal income tax return and have no beneficial owner that is required to file a federal income tax return. (e.g. a state-owned hospital or health care clinic); and
  2. Must have provided patient care after January 31, 2020; and
  3. Must not have permanently ceased providing patient care directly, or indirectly through included subsidiaries; and
  4. If the applicant is an individual, have gross receipts or sales from providing patient care reported on Form 1040, Schedule C, Line 1, excluding income reported on a W-2 as a (statutory) employee.

Sax will continue to update you as further details are made available.  Reach out to your Sax advisor or email [email protected] with questions.  For more and on-going information relative to your state and business, visit Sax’s COVID-19 Resource Center.



Get in touch with Sax by filling out the form below: