COVID Provider Relief Fund Reporting Update: Lost Revenues
The U.S. Department of Health and Human Services (HHS) released Frequently Asked Questions (FAQs), on June 19, 2020, which described the types of expenses that Provider Relief Fund (PRF) distributions may be applied to FAQs also include lost revenue as a permitted use of the PRF distributions.
HHS strived to balance PRF distributions by providing general and targeted distributions, recognizing that some providers have been hit harder than others by the COVID-19 pandemic. As a result of these distributions, some providers became more profitable during 2020 than the previous year. HHS determined that it was unfair to allow some providers to be more profitable in 2020 than 2019 while so many other providers struggled. Due to this, HHS issued PRF reporting instructions, on September 19, 2020, which limited the use of funds to an amount that would allow providers to be no more profitable in 2020 than in 2019.
However, these reporting instructions resulted in considerable attention and opposition from providers, associations and Members of Congress who urged HHS to allow PRF distributions against all lost revenues without limitation (as opposed to lost margin).
On October 22, 2020, HHS amended its reporting instructions to provide for the full applicability of PRF distributions to lost revenues.
For more information on the Provider Relief Fund reporting, click here
Find the 10/22/20 General and Targeted Post-Payment Notice of Reporting Requirements here.