Last week, HHS announced the distribution of more than $2 billion in Provider Relief Fund (PRF) Phase 4 General Distribution payments. These payments bring the Phase 4 distribution total to approximately $11 billion of the total allotted $17 billion. In this round of distributions, more than 7,600 providers received payments based on changes in revenue and expenses, with an increased focus on equity.
Phase 4 payments are based on providers’ lost revenues and expenditures between July 1, 2020 and March 31, 2020. Notably, Phase 4 applications added new elements specifically focused on equity. Of note, the elements focus on reimbursing a higher percentage of losses for smaller providers, and include “bonus” payments for providers who serve Medicaid, CHIP, and Medicare beneficiaries. HHS has processed approximately 82 percent of all Phase 4 applications, and payments are expected to continue through 2022.
Within 90 days of receiving a payment, recipients must use the PRF portal to sign an attestation confirming receipt and agreeing to the terms and conditions. As previously reported in Health Headlines, the terms and conditions for Phase 4 require recipients that receive payments greater than $10,000 to notify HHS during the applicable Reporting Time Period of any mergers with, or acquisitions of any other healthcare provider that occurred within the relevant Payment Received Period. HRSA considers changes in ownership, mergers/acquisitions, and consolidations to be reportable events. Whether a Reporting Entity has undergone a merger or acquisition during the applicable Payment Received Period will be considered when determining whether an entity will be audited. Additionally, if applicable, PRF recipients must immediately notify HRSA about any bankruptcy petition or involvement in a bankruptcy proceeding.
Recipients that choose to reject the funds must complete the attestation and return their payment no more than 15 days later.
The HHS press release regarding the PRF payments is available here. The Phase 4 Terms and Conditions are available here.
