Don’t Risk Loan Forgiveness with Sax’s PPP & PRF Advisory Services for the Healthcare Industry

Your healthcare practice is on the road to recovery and you can start to see the light at the end of the tunnel.  Now you need to turn your attention to complying with the myriad of reporting requirements for the CARES Act funding, so that you can retain the funds that you received.

The Health and Human Services’ (HHS) Provider Relief Fund (PRF) provided most medical and dental groups with funding in the amount of 2% of annual revenue during Phases 1-3 of the program, as well as targeted distributions.  As part of the terms and conditions for retaining these funds, healthcare entities need to now accurately report how these funds were utilized to pay for COVID-19 related expenses, as well as provide the calculations of lost revenue.

The first and second round of the Paycheck Protection Program (PPP) provided most medical groups with funding for staffing and an expanded list of operating and COVID-19 related expenses.  Forgiveness depends on a practice spending 60% or more of the loan proceeds on payroll costs during an 8-24-week period, with the remainder utilized for qualifying expenses.

While the HHS reporting portal has not yet been made available to provide the required reporting, one thing is crystal clear: Expenses utilized under one program cannot also be used as expenses under another program, like the PPP.  In fact, the HHS made its position clear in the Post-Payment Notice of Reporting Requirements dated November 2, 2020.  “Healthcare related expenses attributable to coronavirus that another source has not reimbursed and is not obligated to reimburse”.  If that isn’t complicated enough, you also need to account for state and local grants, the EIDL program and the Employee Retention Credit (ERC).

How Sax can help?

Sax’s Recovery Task Force provides advisory services for the PPP and the PRF.  We focus on the intricacies of these programs, along with the interplay of each to ensure compliance, retention of funds and receipt of forgiveness.  We will also alert you to opportunities to participate in other relief programs such as the ERC which was recently enhanced to be available to more practices.

The loan forgiveness period is critical, as you will not have a second chance to edit or resubmit your forgiveness application.  Lean on Sax’s knowledge of the evolving guidance and reporting requirements so you do not risk being denied forgiveness.

We invite you to reference an overview of our PPP and PRF advisory services below, and encourage you to reach out with questions or for more information so you are best positioned for recovery.

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