HHS Now Accepting PRF Phase 3 Applications.
Good news for healthcare providers: the HHS just allocated another $20 Billion to the Provider Relief Fund (PRF) for a Phase 3 General Distribution. With this latest round of PRF, the criteria for determining eligibility has been expanded. Further, providers who previously received PRF payments may be entitled to additional payments.
This new Phase 3 distribution aims to ensure all eligible providers have received PRF payments equal to approximately 2% of their annual patient care revenue. All eligible providers who apply for Phase 3 will also be considered for additional payments to offset financial losses and expenses attributable to COVID-19.
How will funds be distributed?
The Health Resources and Services Administration (HRSA) will assess all applicants to determine how much they have received through previous PRF distributions, if any, and will first calculate Phase 3 Distributions on the basis that all eligible providers will receive combined PRF payments equal to 2% of their annual patient care revenue.
For example: If your medical practice previously received PRF distributions that did not reach the 2% threshold, you will be eligible for an additional amount during Phase 3 that, when combined with all previous distributions, will equal 2% of your annual patient care revenue.
The remaining funds will be allocated for additional payments to eligible providers that experienced losses and expenses directly related to COVID-19. The HRSA will calculate these additional payments based on several factors, including:
- Changes in operating revenues;
- Changes in operating expenses; and
- Payments already received from PRF distributions.
Who is eligible?
The Phase 3 Distribution will not be an automatic payment; eligible providers must apply. Eligible providers now include:
- Behavioral Health providers, including providers who have not previously been eligible for funding; and
- New providers who began practicing between January 1, 2020, and March 31, 2020, including Medicare, Medicaid, CHIP, dental, and behavioral health providers, as well as assisted living facilities.
In addition, any provider who received, rejected, or accepted a previous PRF General Distribution payment is also eligible for the Phase 3 Distribution, regardless of the amount received.
How (and when) should you apply?
The HHS is accepting applications now until November 6, 2020, but they are urging providers to apply as soon as possible. Because Phase 3 distributions will be largely based on the payment amounts providers have already received, this distribution will require a detailed review and calculation process; applying as early as possible will help facilitate earlier payments.
All applications for the Phase 3 General Distribution should be submitted through the PRF Application and Attestation Portal.
The bottom line
Whether you have received previous PRF payments or not, this new Phase 3 Distribution provides a valuable opportunity for your practice to support your recovery from the financial toll of the pandemic. Aprio can help you assess your eligibility and throughout the application process. If you have already received PRF Distributions, Aprio can assist you with your reporting requirements described here.