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The $70 Billion Question – CARES Act Provider Relief Fund Helping Hardest Hit Hospitals First

Client Alert

HHS finally unveiled its preliminary plan for disbursement of the remaining $70 billion of CARES Act Provider Relief Funds. The initial $30 billion was disbursed to providers based on 2019 Medicare fee-for-service payments. HHS indicated that the remaining $70 billion would be disbursed to (1) providers that incurred COVID-19 expenses, (2) rural providers, (3) providers that primarily receive payments from other sources (such as Medicaid), and (4) providers that treat uninsured Americans.

How will the funds be distributed?

First, $10 billion will go to hospitals that have been impacted hardest by COVID-19. This will be based upon the total number of admitted patients who tested positive for COVID-19. Hospitals will have until April 23, 2020 at midnight to apply and should have received an email with a link to the portal (there is no website similar to the payment attestation).

Providers will need to submit the following information (HHS estimates this should take 5 minutes):

  • Tax Identification Number
  • National Provider Identifier
  • Total number of Intensive Care Unit beds as of April 10, 2020
  • Total number of admissions with a positive diagnosis for COVID-19 from January 1, 2020 to April 10, 2020

Second, an additional $20 billion will be rolled out based on overall patient revenue. There will likely be an application or reporting mechanism. Payments will be issued on a rolling basis. Stay tuned for updates on application release or additional information.

Third, an additional $30 billion is set aside for SNFs, dentists, and providers that only service Medicaid providers.

More information can be found by following the link below.

https://www.hhs.gov/about/news/2020/04/22/hhs-announces-additional-allocations-of-cares-act-provider-relief-fund.html

For questions, contact your primary BMD Healthcare or Hospital Law attorney.


Did You Know that Certain Expenses May Not Be Deductible if You Received a PPP Loan?

On April 30, 2020, the IRS issued a Notice stating that for Federal income tax purposes, certain expenses that would otherwise be deductible in a taxpayer’s trade or business may not be deductible if the taxpayer received a loan under the Paycheck Protection Program (“PPP”).

Unemployment Requests From Former Employees

Have you received a Request for Information or Unemployment Award Decision from the a state unemployment agency for an employee who left your employ weeks or months ago? With the dramatic rise of unemployment filings as a result of the COVID-19 pandemic, many employers are receiving unemployment decisions or requests for employment information for former employees have have not been employed by them for a great period of time.

Essential Businesses in Ohio: Today’s Announcements Apply to You

Governor DeWine announced the “Responsible Restart Ohio” program this afternoon to set the stage for reopening certain areas of the Ohio economy. Matt Heinle and Jeff Miller posted on the overall requirements today. While the announcement and our post focused on reopening certain businesses, the mandatory requirements and recommendations apply to ALL businesses, including those which had been open and operating as an Essential Business.

Responsible Restart Ohio: Stay at Home Stays in Place – First Phase of Back to Work with Precaution and Protocols

Governor Mike DeWine announced new plans today regarding the reopening of Ohio, including the first wave of businesses to welcome employees and customers back inside. This will not be rapid process and that is by design, as DeWine emphasizes that the guiding principles behind Ohio’s plan are to protect the health of employees, customers and their families, support community efforts to control the spread of the virus and to take the lead in responsibly getting Ohio back to work.

BMD President Matt Heinle Shares Insights on the Critical State of Hospitals

The critical state of Hospitals in America due to the coronavirus pandemic.