Medic Management Blog | Thought Leadership

Trump Administration Announces $20 Billion in New Phase 3 Provider Relief Funding - Medic Management

Written by Medic Management | Oct 13, 2020 1:50:35 PM

On October 1, 2020 Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), announced $20 billion in new funding for providers on the frontlines of the coronavirus pandemic. Under this Phase 3 General Distribution allocation, providers that have already received Provider Relief Fund payments will be invited to apply for additional funding that considers financial losses and changes in operating expenses caused by the coronavirus.

Providers can begin applying for funds as of today, October 5, 2020. Applicants who submit by Friday, November 6, 2020 at 11:59 p.m. ET will be considered for funding.

Items required prior to applying through the Portal: https://cares.linkhealth.com/#/

  •  Determine Valid Eligibility
    •  Extended eligibility to include new providers that billed Medicaid/CHIP, Medicaid Managed Care Plan and Medicare Fee for Services through March 31, 2020
    • Added Assisted Living Facilities, Dental Services and Behavioral Health Providers to the list of eligible providers
  • Have a Valid OPTUM ID
    • If provider does not have one already, Portal allows a new one to be set up
  • Validate your practice Tax TIN ID
    •  Recognized TINs will be automatically validated, and the provider may re-enter portal to complete application including TINs from a state-provided 3rd party list or those previously verified in prior PRF distributions
    • Unrecognized TINs will go through a three-step validation process which could take up to 4 weeks for TIN Validation
  •  Apply for Funding
    •  Required contact information and email that will be used to receive an access code to begin application
      • Email will come from HRSA CARES Act Provider Relief via DocuSign
        • Subject line “Email Validation: CARE Act Provider Relief Fund”
      • Link to application will be in the Email
    • Have most current (2019/2020) Tax returns filed to submit to the portal. For those that submitted for Phase 2, you likely submitted your 2018 return
    • If required fill out the “revenue worksheet”. information includes Group Name, TIN, Gross Revenues as shown on Tax return and any acquisitions or dispositions of other entities in 2020.
    • Operating revenues and expenses from patient care
      • You are required to show most current Fiscal Year End Revenues and what % of those revenues relate to Patient Care
      • You are also required to provide totals and documentation of your operating Revenues & Expenses of Q1 & Q2 for 2020 compared to Q1 & Q2 of 2019
    • Required to provide banking Routing number and Account information (similar to Phase 1 & 2 requirements)
  • Receiving Payments
    • Phase 3 General Distribution supports providers who have been most significantly impacted by COVID-19, as measured by changes in their revenues and expenses from patient care
    • Any additional phase 3 distributions will be above and beyond the 2% of annual revenues from patient care that should have been received as part of Phase 1 or Phase 2 of the CARES ACT.
    • All distributions will be paid to the Filing or Organizational TIN, and not directly to subsidiary TINs
  • Attesting Requirements
    • If you receive a phase 3 distribution payment, then have to attest similar to what was done for Phases 1 & 2 distributions.
    • Recipients who receive Provider Relief Fund payments must accept or reject funds within 90 days* through the portal
    • *Not actively attesting within 90 days will be viewed as acceptance.
    • To reject payment, the recipient must return funds to HHS within 15 calendar days of the attestation
  • Reporting on use of Funds Requirements – Similar to what was required with Phase 1 &2
  • Users Guide

Ronnen Isakov is Managing Director Advisory Service of MMG Healthcare Solutions / Medic Management Group. His background includes extensive work in areas including business advisory, valuation, network optimization, transaction support, and project management. MMG is a national provider of consulting services and back office administrative support to independent and system owned physician practice groups. Additionally, MMG has been formally recognized as a multi-year Northeast Ohio Top Workplaces award winner.