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On October 1st,
under the leadership of President Trump, the U.S. Department of Health and
Human Services (HHS), through the Health Resources and Services
Administration (HRSA), is announcing $20 billion in new funding for
providers on the frontlines of the coronavirus pandemic. Under this Phase 3
General Distribution allocation, providers that have already received
Provider Relief Fund payments will be invited to apply for additional
funding that considers financial losses and changes in operating expenses
caused by the coronavirus. Previously ineligible providers, such as those
who began practicing in 2020 will also be invited to apply, and an expanded
group of behavioral health providers confronting the emergence of increased
mental health and substance use issues exacerbated by the pandemic will
also be eligible for relief payments.
Providers can begin
applying for funds on Monday, October 5, 2020.
“HHS has worked to ensure
that all American healthcare providers receive support from the Provider
Relief Fund in a fast and fair way, and this new round helps ensure that we
are reaching America’s essential behavioral health providers and takes into
account losses and expenses relating to coronavirus,” said HHS Secretary
Alex Azar. “We’ve worked with all of the resources we have across HHS to
ensure that America’s heroic healthcare providers know they can apply for
support.”
HHS has already issued over
$100 billion in relief funding to providers through prior distributions.
Still, HHS recognizes that many providers continue to struggle financially
from COVID-19’s impact. For eligible providers, the new Phase 3 General
Distribution is designed to balance an equitable payment of 2 percent of
annual revenue from patient care for all applicants plus an add-on payment
to account for revenue losses and expenses attributable to COVID-19.
Further, HHS recognizes
constraints such as the stay-at-home orders and social isolation have been
particularly difficult for many Americans. A recent Centers for Disease
Control and Prevention (CDC) report found the prevalence of
symptoms of anxiety disorder in the second quarter of 2020 was
approximately three times those that reported in the second quarter of 2019
(25.5% versus 8.1%); and the prevalence of depressive disorder was
approximately four times that reported in the second quarter of 2019 (24.3%
versus 6.5%). Our behavioral health providers have shouldered the burden of
responding and confronting this expanded challenge triggered by the pandemic.
When traditional face-to-face counseling was restricted and new telehealth
flexibilities were put in place in response to the pandemic, many
behavioral health providers invested in and adopted - PDF telehealth
technologies to continue providing patient care. While some Medicare or
Medicaid behavioral health providers have already received prior General
Distribution payments, others have not. Working with the Substance Abuse
and Mental Health Services Administration (SAMHSA), HRSA developed a list
of the nation’s behavioral health providers now eligible for funding, which
includes, for example, addiction counseling centers, mental health counselors,
and psychiatrists.
Eligibility
HHS is making a large
number of providers eligible for Phase 3 General Distribution funding,
including:
- Providers who previously received, rejected or accepted a
General Distribution Provider Relief Fund payment. Providers that have
already received payments of approximately 2% of annual revenue from
patient care may submit more information to become eligible for an
additional payment.
- Behavioral Health providers, including those that
previously received funding and new providers.
- Healthcare providers that began practicing January 1,
2020 through March 31, 2020. This includes Medicare, Medicaid, CHIP,
dentists, assisted living facilities and behavioral health providers.
Payment Methodology – Apply Early
All eligible providers will
be considered for payment against the below criteria.
- All provider submissions will be reviewed to confirm they
have received a Provider Relief Fund payment equal to approximately 2
percent of patient care revenue from prior general distributions.
Applicants that have not yet received Relief Fund payments of 2
percent of patient revenue will receive a payment that, when combined
with prior payments (if any), equals 2 percent of patient care
revenue.
- With the remaining balance of the $20 billion budget,
HRSA will then calculate an equitable add-on payment that considers
the following:
- A provider’s change in operating revenues from patient
care
- A provider’s change in operating expenses from patient
care, including expenses incurred related to coronavirus
- Payments already received through prior Provider Relief
Fund distributions.
We know providers want to
receive payments shortly after submitting their information. However, this
distribution requires cooperation on the part of all applicants. Again, HHS
is urging all eligible providers to apply early; do not wait until the last
day or week of the application period. Applying early will help to expedite
HHS’s review process and payment calculations, and ultimately accelerate
the distribution of all payments.
All payment recipients will
be required to attest to receiving the Phase 3 General Distribution payment
and accept the associated Terms and Conditions.
Application Deadline
Providers will have from
October 5, 2020 through November 6, 2020 to apply for Phase 3 General
Distribution funding. HHS’s top priority is ensuring as many providers
possible have an opportunity to apply. HHS will continue to host webinars
to assist providers through the application process and the call center is
also available to address questions.
HHS recognizes the
multifaceted challenges of this pandemic cannot be won without frontline
healthcare providers focused on containing the virus and delivering
holistic care. Funding for this Phase 3 General Distribution was made
possible through the bipartisan CARES Act and the Paycheck Protection
Program and Health Care Enhancement Act, which allocated $175 billion in
relief funds to hospitals and other healthcare providers.
For updates and to learn
more about the Provider Relief Program, visit: hhs.gov/providerrelief.
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