Important Clarification for Provider Relief Fund FAQs from HHS

Below, HORNE Healthcare has highlighted important points from the Provider Relief Fund FAQs provided by the U.S. Department of Health and Human Services (HHS):

Eligibility:

  • Any provider who has already received a payment from the Provider Relief Fund General Distribution (from the $50 billion appropriation) as of 5:00 pm EST Friday, April 24th, can and should apply for additional funding via the Provider Relief Fund Application Portal. 
  • Providers must also attest to the HHS Terms & Conditions and submit tax documents and financial loss estimates if they wish to be eligible for additional funds.

Information Required for Application:

  • A provider’s “Gross Receipts or Sales” or “Program Service Revenue” as submitted on its federal income tax return; 
  • The provider’s estimated revenue losses in March 2020 and April 2020 due to COVID; 
  • A copy of the provider’s most recently filed federal income tax return; 
  • A listing of the TINs any of the provider’s subsidiary organizations that have received relief funds but that DO NOT file separate tax returns. 

To better understand COVID impact, HHS is collecting revenue loss information. Tax forms are being collected to verify the self-reported information.

How to estimate lost revenue for March and April 2020 

  • Lost revenue can be estimated by comparing year-over-year revenue, or by comparing budgeted revenue to actual revenue. For April 2020, an estimate of the total monthly loss based on data from the first few weeks in April. Extrapolation from March data is also acceptable. 
  • Providers may use a reasonable method of estimating the revenue during March and April compared to the same period had COVID-19 not appeared. For example, if you have a budget prepared without taking into account the impact of COVID-19, the estimated lost revenue could be the difference between your budgeted revenue and actual revenue. It would also be reasonable to compare the revenues to the same period last year. 

Tax-Exempt Organizations

  • For providers who do not file a federal tax return, but are otherwise eligible for funds, as shown above, Net Patient Revenue from the provider’s most recent audited financial statements should be used. 

Providers must submit a copy of these audited financials in lieu of the tax return.

Timing on additional funding: 

For providers submitting tax and financial loss information, HHS intends to distribute additional funds within 10 business days of the submission.

For the complete HHS Provider Relief Fund FAQs, please click here.

If you have questions about how HORNE Healthcare can assist your organization with this or other funding opportunities, please contact us