Suppliers applying for additional funds from the CARES Act Provider Relief General Distribution Fund (the “Fund”) must submit a funding application by tomorrow, June 3, 2020. Applicants must accept the terms and conditions from the initial round of provider relief funds as part of the round-two application. Suppliers that do not intend to apply for additional funds have until July 8, 2020, to accept the terms of the first-round money.
HHS reserved the additional funds (and set the June 3 deadline) for businesses with disproportionately low Medicare sales such as suppliers that primarily service pediatric patients, Medicaid patients, or facilities.
Two Rounds of Funding
The Fund is a $50 billion pot of money distributed to Medicare providers in two stages. The first-round allocation, totaling $30 billion, equaled 6% of each supplier’s 2019 Medicare payments. Suppliers did not apply to receive first-round funds.
For many suppliers, this initial deposit is the only one they are eligible to receive. If the first distribution exceeds 2% of 2019 net patient revenue, suppliers may not receive additional funds. The way the math works out, suppliers whose Medicare billings account for more than about one-third of total 2019 revenue should not apply for additional funds.
For those that are eligible, the second round of provider relief will distribute $20 billion of additional stimulus to healthcare providers whose businesses are not Medicare centric. Suppliers must submit an online application and upload tax documents to support net revenues.
The Application Process
Eligible suppliers must upload their revenue information into the General Relief Portal. An online tutorial will help suppliers navigate the portal.
Suppliers should be prepared to provide the following information during the application process:
HHS reserved the additional funds (and set the June 3 deadline) for businesses with disproportionately low Medicare sales such as suppliers that primarily service pediatric patients, Medicaid patients, or facilities.
Two Rounds of Funding
The Fund is a $50 billion pot of money distributed to Medicare providers in two stages. The first-round allocation, totaling $30 billion, equaled 6% of each supplier’s 2019 Medicare payments. Suppliers did not apply to receive first-round funds.
For many suppliers, this initial deposit is the only one they are eligible to receive. If the first distribution exceeds 2% of 2019 net patient revenue, suppliers may not receive additional funds. The way the math works out, suppliers whose Medicare billings account for more than about one-third of total 2019 revenue should not apply for additional funds.
For those that are eligible, the second round of provider relief will distribute $20 billion of additional stimulus to healthcare providers whose businesses are not Medicare centric. Suppliers must submit an online application and upload tax documents to support net revenues.
The Application Process
Eligible suppliers must upload their revenue information into the General Relief Portal. An online tutorial will help suppliers navigate the portal.
Suppliers should be prepared to provide the following information during the application process:
- Taxpayer Identification Number (TIN) for the entity that received a first-round provider relief deposit.
- TINs of subsidiary organizations that received a first-round provider relief deposit, but did not file separate tax forms (i.e., rolled up in the parent organization’s tax filing).
- Amount of payments received in the first-round deposit.
- Payment transaction numbers/check numbers associated with the first-round deposit.
- Most recently filed tax form (see chart below).
What Happens Next
HHS may contact round-two applicants for additional information. When additional information requests, if any, are satisfied, the agency will send an email indicating the application process is complete. HHS will process applications as quickly as possible and issue payments to approved suppliers weekly.
SOURCE LINKS
https://www.hhs.gov/about/news/2020/05/20/providers-must-act-june-3-2020-receive-additional-relief-fund-general-distribution-payment.html
https://www.hhs.gov/sites/default/files/provider-relief-fund-general-distribution-faqs.pdf
https://data.cdc.gov/api/views/kh8y-3es6/rows.csv?accessType=DOWNLOAD&bom=true&format=true
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