On October 1, 2020, President Trump and the U.S. Department of Health and Human Services (HHS) announced $20 billion in new funding through the Health Resources and Services Administration for the Provider Relief Fund (PRF). As a reminder, the PRF was part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that distributed $50 billion to providers who bill Medicare fee-for-service.
The additional funding is part of the Phase Three General Distribution allocation. Meaning that providers who received funds in earlier phases are now eligible to apply for additional funding to cover financial losses and operational changes. Providers who began practicing in 2020 are also eligible to apply for this phase of distribution.
The deadline to apply for a PRF reimbursement is November 6, 2020, at 11:59 pm ET.
Per Phase Three General Distribution guidelines, all providers previously eligible for a PRF distribution may apply. This includes any entities or practices that provide COVID-19 testing or treatment. While new 2020 providers, dentists, and behavioral health providers are also now eligible, a full list is available on the HHS website.
Applying for Phase Three General Distribution
Providers must submit their Taxpayer Identification Number (TIN) and financial information to the PRF portal. Applicants will need to submit the most recent federal income tax returns for the years 2017-2019. If your practice was not operational before January 1, 2020, the quarterly tax returns for 2020 are acceptable.
The PRF is distributed through a reimbursement process, typically at Medicare rates.
The steps to enroll and receive reimbursement are:
- Register as a provider participant
- Confirm patient eligibility
- Submit patient information
- Submit claim(s)
- Receive direct deposit payment
Most claims are reimbursed within 30 days, and adjustments or corrections are not allowed once the payment is received.
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Partner, Healthcare Business Advisor
Jenny Smerud, CPA
Aldrich CPAs + Advisors LLP
Jenny Smerud specializes in tax planning, consulting, and compliance services for businesses and business owners, primarily in the healthcare sector. Jenny has been practicing as a CPA since 2001 both in public accounting and in private industry. Prior to practicing in tax, Jenny worked in Assurance Services in the Healthcare Division of Ernst & Young…
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