As COVID-19 surges and natural disasters impact healthcare providers across the nation, the HRSA has announced two new forms of relief. Grassi is monitoring these developments closely, and our team is available to help you take the next step to secure additional relief and maintain reporting compliance.
Phase 4 General Distribution
The Health Resources and Services Administration (HRSA) has announced an additional $25.5 billion in new funding for health care providers affected by the COVID-19 pandemic. Applications for Phase 4 funds will open on September 29, 2021.
This round of funding includes:
- $17 billion for Provider Relief Fund (PRF) payments, which will be based on providers’ lost revenues and increased expenditures between July 1, 2020 and March 31, 2021
- $8.5 billion in American Rescue Plan (ARP) resources for providers who serve rural Medicaid, Children’s Health Insurance Program (CHIP) or Medicare patients
Phase 4 includes new elements specifically focused on equity, including reimbursing smaller providers for lost revenues and COVID-19 expenses at a higher rate than larger providers, and bonus payments based on the amount of services provided to Medicaid/CHIP and Medicare patients.
Grace Period for First PRF Reporting Deadline
While recipients of more than $10,000 in PRF payments (during Period 1) are strongly encouraged to meet the September 30, 2021 deadline for reporting use of the funds, the HRSA has announced a 60-day grace period for providers who fail to meet this first reporting deadline. No recoupment of payments or other enforcement actions will be initiated between October 1, 2021 and November 30, 2021.
This grace period applies only to the reporting deadline, with no change to the Period of Availability. Providers must return all unused funds as soon as possible after submitting their reports, and no later than 30 days after the end of the grace period (December 30, 2021).
Grassi can also help you organize your final reporting discussions, calculate losses and expenses, determine eligibility for ARP funds, and prepare for the Phase 4 application submission.