By: Jessica L. Robey and Alaina N. Crislip
On October 1, 2020, The Department of Health and Human Services (“HHS”), through the Health Resources and Services Administration (“HRSA”) announced the disbursement of another $20 billion in financial relief for certain physician practices and other health care delivery organizations and clinicians who are part of the Coronavirus Aid, Relief and Economic Security Act (“CARES”). Providers will have from October 5, 2020 – November 6, 2020 to apply for this “Phase 3” funding; however, HHS is encouraging providers to apply as soon as possible to increase their chances of receiving the funding.
Although HHS has already distributed over $100 billion in relief funding to providers through prior distributions, many are still struggling financially from the impact of COVID-19 and were ineligible to receive funding from the initial distributions. This Phase 3 disbursement, however, includes additional individuals and providers, such as those who began practicing in 2020, addiction counseling centers, mental health counselors, and psychiatrists.
To be eligible1 for Phase 3 funding, the applicant must meet one of the following criteria:
- Billed Medicaid/CHIP Programs or Medicaid managed care plans for health-related services between January 1, 2018 – March 31, 2020; or
- Billed a health insurance company for oral-health care related services as a dental services provider as of March 31, 2020; or
- Billed Medicare fee-for-services during the period of January 1, 2019 – March 31, 2020; or
- Be a Medicare Part A provider that experienced a CMS approved change in ownership prior to August 10, 2020; or
- Be a state-licensed/certified assisted living facility as of March 31, 2020;
- Be a behavioral health provider as of March 31, 2020 who has billed a health insurance company or who does not accept insurance and has billed patients for health-care related services as of March 31, 2020;
- Filed a federal income tax return for fiscal years 2017, 2018, 2019 if in operation before January 1, 2020; or be exempt from filing a return; and
- Provided patient care after January 31, 2020 (Note: patient care includes health care, services, and support, as provided in a medical setting, at home or in the community); and
- Did not permanently cease providing patient care directly or indirectly; and
- For individuals providing care before January 1, 2020, have gross receipts or sales from patient care reported on Form 1040 (or other tax form)
Notably, providers who previously received, rejected, or accepted a General Distribution Provider Relief Fund payment are permitted to re-apply and receive additional funding. Providers that have already received payments of approximately 2% of annual revenue from patient care may submit more information to become eligible for an additional payment.
We expect HHS to provide further updates regarding this Phase 3 funding in the coming weeks. Jackson Kelly will continue to advise as this information becomes available. Should you need assistance in applying for this funding, please contact Alaina Crislip or Lindsay Petrosky.
1 https://www.hhs.gov/coronavirus/cares-act-provider-relief-fund/general-information/index.html#phase3