Last week, HHS released new and modified existing Frequently Asked Questions (FAQs) regarding payments distributed to providers via the CARES Act Provider Relief Fund. Importantly, the CARES Act requires that providers attest that they meet certain Terms and Conditions to retain Provider Relief Funds. The FAQs released by HHS provide additional detail regarding requirements for the Provider Relief Funds.

Many of the new FAQs address questions relating to transactions, including mergers and acquisitions. For example, HHS addressed the case of a merger of a provider entity into another entity, or the consolidation of two or more entities, resulting in the creation of a new entity with a single billing TIN between January 1, 2018 and January 31, 2020. According to the FAQs, in that case, if the non-surviving entity received a Provider Relief Fund payment but was not providing diagnoses, testing, or care for individuals with possible or actual cases of COVID-19 on or after January 31, 2020, the provider must reject the Provider Relief Fund payment. Further, HHS explained that, if the acquiring entity received a Provider Relief Fund payment, it should accept the payment only if its adjusted gross receipts exceed the gross receipts shown in the tax return by more than 20% in the Provider General Distribution Relief Fund Payment Portal to be considered for additional Provider Relief Fund payments.

The complete FAQ document is available on the HHS website here.