HHS Changes Stance on “Lost Revenue” for PRF Reporting
In response to concerns raised by the healthcare industry, the Department of Health and Human Services (HHS) has amended the reporting instructions for how Provider Relief Fund (PRF) recipients can apply funds towards lost revenues attributable to the COVID-19 pandemic.
Within the original reporting instructions released on September 19th, HHS placed a limit on the amount of PRF monies that could be applied towards lost revenue so as not exceed the amount of a provider’s 2019 net profit from healthcare related sources. The guidance prohibited providers receiving funding from being more profitable in 2020 than they were in the pre-pandemic 2019 year, which raised great concern from the provider community still in recovery.
HHS has addressed these concerns by announcing that recipients may apply PRF payments toward lost revenue, up to the amount of the difference between their 2019 and 2020 actual patient care revenue. In the event that PRF monies are not expended by the end of 2020, recipients will have six additional months to use the funds or apply them towards lost revenue in an amount not to exceed the difference between 2019 and 2021 actual revenue.
HHS’s memorandum on the policy change is available: HERE
The updated reporting requirements are available: HERE
Provider Relief Fund Phase 3 General Distribution
As a reminder, the application window for the Phase 3 general distribution of PRF funds is now open until November 6th, 2020. Along with the updates pertaining to PRF reporting requirements, HHS also expanded the list of eligible provider types for Phase 3.
The HHS press release is available: HERE
For our earlier article on the Phase 3 distribution, CLICK HERE
As always, ADVOCATE will keep you up to date on this and all issues impacting medical groups as they become available.
Manager, Regulatory Affairs