Phase 3 – HHS Earmarks Another $20 Billion to be Distributed to Eligible Recipients through the Provider Relief Fund

by | Oct 16, 2020

The Department of Health and Human Services (HHS) recently announced that they added $20 billion to the Provider Relief Fund (PRF) as part of phase 3 efforts to support healthcare organizations during this very trying year. Those who have previously applied for funding can apply for additional funds if they qualify.

According to the Centers for Disease Control, by the end of September, nearly 500 people per 100,000 will be hospitalized due to COVID-19. And according to the Financial Times, Texas recently overtook California in COVID-19 deaths. The challenges are expected to continue through the end of the year and possibly into the next.

Is Your Organization Eligible?

Phase 3 includes the number of health organizations eligible for funding. Eligible healthcare providers now include the following in addition to those who previously qualified:

  • Behavioral health providers,
  • Healthcare providers who started practicing in 2020, and
  • Those who already received, or were rejected for, payments from the General Distribution Provider Relief Fund.

How It Works

The HHS is strongly encouraging that eligible entities apply well before the November 6 deadline. The initial step in the process is to verify the entity’s TIN, which can take some time. Once the application is approved, applicants will receive what represents 2% of patient fees. As a general rule, this is measured based on 2019 revenue. For businesses who started in 2020, the 2% will be calculated on 2020 quarterly financials. Then, once the application deadline of November 6 has passed, the HHS will revisit all phase 3 applications and allocate a second batch of financial relief based on need and the amount of funds available for distribution.

You can find additional information atthe HHS.gov Cares Act Provider Relief Page.

Provider Relief Funding Phase 3 Deadline is November 6, 2020.

If your organization may qualify for these funds, we encourage you to consider the potential benefits along with the potential negatives. If you have questions, our team of healthcare experts is one call away. Reach out to speak with someone.

IRS Announces Increases for HSAs and HDHPs in 2023

The IRS recently released new contribution limits for 2023 health savings accounts and excepted benefit health reimbursement arrangements and new requirements for qualifying high deductible health plans to reflect cost of living adjustments. Learn about the new limits and requirements in this article.

Growing your Business Through Mergers and Acquisitions

The business world is consolidating rapidly and companies of all sizes are looking to increase their size, power, and efficiency through merger and acquisition (M&A) activity. Learn how a merger or acquisition may help your company grow quickly and efficiently.

Estate planning: Five ways to avoid probate

Estate planning enables you to specify what happens with your assets after death or incapacitation. While every situation is unique, individuals often create estate plans that minimize the need for probate. Probate is the legal process of validating a will and...