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$20 Billion Announced for New Phase 3 Provider Relief Funding

Tiffany Karlin

October 01, 2020

The U.S. Department of Health and Human Services (HHS) announced an additional $20 Billion in new funding for providers on the frontlines of the coronavirus pandemic. Click here for details.

This new “Phase 3 General Distribution” allocation will be an application process for providers to receive additional funding. For more details on the application process, click here.

Eligibility for application includes:

  1. Providers who already received general distribution payments but incurred further financial losses and changes in operating expenses caused by the coronavirus;
  2. Previously ineligible providers, such as those who began practicing in 2020 (includes Medicare, Medicaid, CHIP, dentists, assisted living facilities and behavioral health providers); and
  3. Behavioral health providers.

Portal to apply opens:  Monday, October 5, 2020.

Deadline to Apply: November 6, 2020

WORD OF CAUTION: APPLY EARLY! 

Payment Methodology

Providers will be reviewed to verify they were recipients of Relief Fund Payments equating to approximately 2% of patient care revenue. Applicants that have not yet received Relief Fund payments of approximately 2% of patient revenue will receive a payment that, when combined with prior payments (if any), equals 2%.

Of the remaining $20 Billion budget balance, HHS will 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; and
  • Payments already received through prior Provider Relief Fund distributions.

As with all distributions, providers will be required to attest to receiving the Phase 3 general distribution payment and accept associated Terms and Conditions. Once the portal opens, and more information is provided, we will update you!

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