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How to Access Your Piece of Medicare Provider Relief Fund

The public health crisis brought on by the spread of the novel coronavirus has had a significant economic impact on every industry operating in America and around the world. One of the most impacted industries is the businesses at the frontlines of this pandemic: America’s healthcare providers.

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The public health crisis brought on by the spread of the novel coronavirus has had a significant economic impact on every industry operating in America and around the world. One of the most impacted industries is the businesses at the frontlines of this pandemic: America’s healthcare providers.

The public health crisis brought on by the spread of the novel coronavirus has had a significant economic impact on every industry operating in America and around the world. One of the most impacted industries is the businesses at the frontlines of this pandemic: America’s healthcare providers.

Our team at blumshapiro is working to provide you with the latest information to keep you informed and prepared to navigate this crisis. You can review our roundup of resources for long-term care and senior living providers by clicking here.

As part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act), the federal government earmarked $100 billion to help hospitals and other healthcare providers continue to respond to this crisis and recover from the economic damage the crisis has created. Of this pool of relief funds, $50 billion was allocated for “general distribution to Medicare facilities and providers impacted by COVID-19.”

Receiving Your Distribution

An initial $30 billion was distributed between April 10-17. The remaining $20 billion began being disbursed on Friday, April 24. By now, most Medicare facilities should have already received a distribution from this relief fund. If you haven’t already received your payment, you should immediately contact the CARES Provider Relief Hotline at (866) 569-3522 or send an email to HospitalCOVID19@hhs.gov.

What’s Next?

The U.S. Centers for Medicare and Medicaid Services has confirmed that distributions from the Medicare Provider Relief Funds are designated as grants, with certain terms and conditions. While we anticipate further, more specific guidance will be provided by the federal government, we want to bring to your attention a few of the key terms and conditions as they stand right now.

In order to designate their federal distribution as a “grant,” providers must ensure they comply with all of the following:

  • Certify that the payment will only be used to prevent, prepare for, and respond to COVID-19, which includes healthcare-related expenses and lost revenues. Preliminary guidance for estimating lost revenues are (1) comparing 2020 revenue to the same period in the prior year, and (2) comparing 2020 actual revenue against a previously established budget.
  • Certify that they will not use the payment to reimburse expenses or losses that have been reimbursed from other sources or that other sources are obligated to reimburse. Further guidance will determine how this limitation interacts with other COVID-related financial support, and whether receipt of these funds will limit participation in other programs available to providers, including loan forgiveness and tax treatments. Please bear in mind that assistance beyond federal programs (for example, Medicaid rate increases related to COVID-19) could also be a factor in the nature and amount of costs eligible for expenditure against the Provider Relief Fund payment.
  • Submit reports to ensure compliance with these conditions. Any recipient receiving more than $150,000 in total funds under the CARES Act and related federal coronavirus acts will need to file a quarterly report on related spending. The first report will be due by July 10, 2020 with the following information required for inclusion:
    • Total amount received
    • Detailed list of projects or activities for which the covered funds were spent
  • Maintain, and submit, copies of records and cost documentation to substantiate the reimbursement of costs under this award, and fully cooperate in any potential audits.

Careful record-keeping will be necessary to achieve compliance, and to identify any potential overlap with other programs.

Please do not hesitate to contact blumshapiro with any questions, or if you feel you need assistance documenting this information.

 

COVID-19 Business Resources

 

Disclaimer:  The contents of this resource are for general informational purposes only. While every effort has been made to ensure its accuracy, the information is provided “as is” and no representations are made that the content is error-free. We have no obligation to update any content, comments or other information for retroactive or prospective interpretations or guidance provided by regulators, financial institutions or others. The information is not intended to constitute legal advice or replace the advice of a qualified professional. There are areas of the CARES Act where additional clarification from the Treasury Department and the SBA is needed. Your judgment and interpretation of the act may be needed. Users should consult with their legal counsel and representatives of the lending institution regarding the proper completion of their application and supporting documentation.

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