Payments from the Provider Relief Fund (PRF), distributed at the federal and state level as part of the CARES Act, offered a much-needed financial boost to healthcare providers impacted by coronavirus. COPYRIGHT 2023 RKL. This single audit requirement may be a new compliance dimension for some PRF recipients, and will likely affect mostly large single-site and multi-site organizations. About | HRSA As a consequence, some providers reported forgone revenue and/or significant financial challenges, making it difficult to sustain services. Coronavirus Relief Fund | U.S. Department of the Treasury Territories (consisting of the . The Department of Health and Human Services (HHS) today announced that later this week it will distribute $9 billion of the $17 billion in Provider Relief Fund (PRF) Phase 4 payments to providers who have experienced revenue losses and expenses related to the COVID-19 pandemic. AHA urges Congress to provide support as hospitals contend with an exhausted workforce, backlogs of care deferred by the pandemic, cracks in the supply chain and a tsunami of financial challenges. HRSA Opens Reporting Portal for Provider Relief Funds, Shares Resources There were large differences in how much each hospital got in funding, Christopher M. Whaley, one of the studys authors, said in an interview. If applicability of this compliance requirement is unclear, PRF recipients should contact their auditors to measure the PRF payments received to determine need for a single audit. COVID-19 Cares Provider Relief Fund This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. PRB Provider Relief Fund General Information FAQ | HRSA The latest Updates and Resources on Novel Coronavirus (COVID-19). More about Reed Abelson. Under the law, the Fund is to be used to make payments for specified uses to States and certain local governments; the District of Columbia and U.S. 90 days for attestation . Centers for Medicare and Medicaid Services recently issued about Paycheck Protection Program loans and Provider Relief Fund payments related to cost reports. Related: Infographic: What's in the CARES Act? Updated: November 4, 2022. Health care providers who received Provider Relief Fund and/or American Rescue Plan Rural payments exceeding $10,000 total between July 1 and Dec. 31, 2021, must report to the Health Resources and Services Administration by this March 31 on how they used those funds or face enforcement actions. AHA does not claim ownership of any content, including content incorporated by permission into AHA produced materials, created by any third party and cannot grant permission to use, distribute or otherwise reproduce such third party content. CARES Act Provider Relief Fund (PRF) | AHA Not all auditors are yellow-book/single audit compliant, so it is important to ensure the audit teams approach and structure meet these standards. Consistent with the Phase 4 payment methodology released by HRSA in September, approximately 75% of Phase 4 funding is being distributed based on expenses and decreased revenue from July 1, 2020 to March 31, 2021. Congress authorized the aid to cushion losses sustained by hospitals during the pandemic, as patients stayed away and facilities could not perform lucrative surgeries and procedures. Provider Relief Fund Reporting Portal User Guide - Registration . The revenue amount must be identified as COVID-19 PHE PRF. AHA does not claim ownership of any content, including content incorporated by permission into AHA produced materials, created by any third party and cannot grant permission to use, distribute or otherwise reproduce such third party content. Overall, the small rural hospitals received 40 percent less funding than their larger and more prosperous counterparts. Those rural facilities often operate under extremely tight budget constraints, and some have closed or been acquired over the course of the pandemic. Territories (the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands); and Tribal governments (collectively . Providers may include staff that were furloughed as a result of the coronavirus in the counts of FTEs. RKLs team of assurance professionals have deep expertise with single audits and grant compliance. By continuing to use this site, you are giving consent to cookies being used. What can PRF recipients do internally to prepare for the single audit? Health care providers who received approval to submit a late report for Period 2 must do so by June 14. This would seem to contradict the Q&A that states providers shouldnt adjust related expenses. Are Provider Relief Fund recipients required to notify HRSA if they have filed a bankruptcy petition? We are RKL, a leading CPA and advisory firm with offices located in Pennsylvania and beyond. Provider Relief Fund (PRF): General and Targeted Distributions Federal Provider Relief Fund Benefited Richer Hospitals, Study Shows healthcare delivery capacity, such as using Provider Relief Fund payments to cover: (i) Employee or contractor payroll; (ii) Employee health insurance; (iii) Rent or mortgage payments; (iv) Equipment lease payments; and/or (v) Electronic health record licensing fees. The registration process must be completed in one session as it is not possible to save a partially completed registration. All rights reserved. HCA Healthcare was one of the larger chains that chose to return some of the federal funds. PDF Provider Relief Fund Q&A Thoughts & Responses - Wipfli Reed Abelson covers the business of health care, focusing on health insurance and how financial incentives affect the delivery of medical care. 5 takeaways from Supreme Court's student loan relief decision : NPR HHS Begins Distributing $9 Billion in Provider Relief Fund Phase 4 Payments. To request permission to reproduce AHA content, please click here. Enhanced Provider Relief Fund Payment Portal Providers must submit documentation reflecting annual patient revenue information to receive a distribution Documentation is due by July 3 . The map below shows the amounts that healthcare providers in each state have received so far from such disbursements. Interactive Teaching Tools, Without Reform, Social Security Could Become Depleted Within the Next Decade. Within 90 days of receiving a payment, providers must sign an attestation confirming receipt of the funds and agreeing to the Terms and Conditions of payment by re-entering the Provider Relief Fund Application and Attestation Portal. Announcements, In the News, COVID-19, PPP. For too many Americans, a ticket to the . In addition, HHS stated that it is currently reviewing the remaining Phase 4 applications and will make the remainder of Phase 4 payments in 2022. Biden's plan would have provided relief to most federal student loan borrowers - as many as 43 million people. A recent op-ed in the online publication STAT (Turn off the spigot for hospitals COVID-19 relief funding) contains blatant factual inaccuracies but also omits critical information about hospital and health systems finances and input costs. id3Sb`:2d !6 What is a single audit? Were hopeful CMS releases additional guidance related to this issue. The extension may not exceed 3 years beyond the end of the cost reporting period in which the liability was incurred.. endstream endobj 533 0 obj <. The relief funds the government distributed during the pandemic created a perfect storm for government enforcement against healthcare providers. Noncommercial use of original content on www.aha.org is granted to AHA Institutional Members, their employees and State, Regional and Metro Hospital Associations unless otherwise indicated. Noncommercial use of original content on www.aha.org is granted to AHA Institutional Members, their employees and State, Regional and Metro Hospital Associations unless otherwise indicated. PDF CARES Act Provider Relief Fund Basis, Formulas, and What the Funds Are HRSA Opens Reporting Portal for Provider Relief Funds, Shares Resources to Assist With Reporting, Updates and Resources on Novel Coronavirus (COVID-19), Institute for Diversity and Health Equity, Rural Health and Critical Access Hospitals, National Uniform Billing Committee (NUBC), AHA Rural Health Care Leadership Conference, Individual Membership Organization Events, Fostering Trust in Pediatric Vaccinations with Gillette Children's, Convincing Your Community: MUSC Health's Drive to Vaccinate Against COVID-19, CMS Eliminates COVID-19 Vaccination Requirement for Health Care Workers, Frequently Asked Questions Regarding ICD-10-CM Coding for COVID-19, CDC Updates COVID-19 Universal Masking, Nursing Home Admission Testing Guidelines, CMS Releases Updated Guidance for the Expiration of the Public Health Emergency, AHA Podcast: Fostering Trust in Pediatric Vaccinations with Gillette Children's, AHA Podcast: Community Partnering to Build Vaccine Confidence, New AHA video celebrates COVID-19 vaccination benefits, SAMHSA releases resource on treating Long COVIDs mental health impact, FDA advisory panel recommends monovalent XBB COVID-19 vaccine for fall, A safe, healthy summer highlights newest AHA COVID-19 vaccination digital toolkit, CDC data confirm third COVID-19 vaccine dose safe in young children, FDA authorizes first at-home COVID-19 test using traditional review pathway, COVID-19 immunity check: Vast majority of Americans have some protections, CMS eliminates COVID-19 vaccination requirements for health care workers, The Current State of Hospital Finances: Fall 2022 Update, Pandemic-Driven Deferred Care Has Led to Increased Patient Acuity in Americas Hospitals, ASPR Preparedness and Response Information Sheet Paxlovid Eligibility and Effectiveness, Workforce Solutions: Recruitment and Retention Strategies in the Wake of the COVID-19 Pandemic, TrendWatch: The Impacts of the COVID-19 Pandemic on Behavioral Health, Massive Growth in Expenses & Rising Inflation Fuel Financial Challenges for Americas Hospitals & Health Systems, COVID-19 Vaccine for Children 6 Months4 Years Old Preliminary Considerations for Pediatric Planning, Whats Next? Congress established the Provider Relief Fund to bolster hospitals and other health care providers to compensate for financial losses and unanticipated costs during the pandemic. RKLs healthcare consulting team developed a customizable tool to help PRF recipients. The government gave out large sums of money quickly to a highly regulated industry, provided little guidance about how relief funds were to be used, and . What Are Treasurys Extraordinary Measures on the Debt Ceiling? Healthcare providers must report Provider Relief Fund payments on the cost report's statement of revenues for informational purposes. Government Enforcement of Pandemic Relief Funds: What Healthcare Providers that received PRF payments from April 10, 2020, through June 30, 2020, can now enter the portal . PDF Medicaid Provider Distribution Instructions - HHS.gov AHA does not claim ownership of any content, including content incorporated by permission into AHA produced materials, created by any third party and cannot grant permission to use, distribute or otherwise reproduce such third party content. Learn how we're working to improve our health system. HHS Begins Distributing $9 Billion in Provider Relief Fund - AHA The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) established the Coronavirus Relief Fund (Fund) and appropriated $150 billion to the Fund. To request permission to reproduce AHA content, please click here. Small rural hospitals, called critical access hospitals, received lower levels of funding, according to the study, by researchers at the RAND Corporation, a nonprofit group. There are a number of steps a PRF recipient can take to prepare for a single audit, including: There is continued industry and stakeholder inquiry on the applicability of the single audit for PRF funds to make sure it does not result in unintended burdens or consequences as providers continue to grapple with the pandemic. And if the provider pays interest on an SBA loan, they can report that interest similar to other interest expenses on the cost report. Chadron, NE & Torrington, WY 308-432-4465, 09/1/2020 Tags: All rights reserved. If the provider doesnt get any kind of forgiveness, then theres nothing to report. However, they have to follow the HRSAs guidance regarding appropriate uses of PRF payments to make sure they used the money for permissible purposes, which are those related to the coronavirus. The Health Resources and Services Administration (HRSA) processed approximately 75% of Phase 4 applications; remaining Phase 4 applications require additional review, and HRSA will make the remainder of the payments next year. Providers that take advantage of the deferral can expense the liability on the Medicare cost report in the year they incurred the costs. Housing insecurity is an ongoing issue for millions of American families. Providers can defer the payment and deposit of the employers share of Social Security taxes in limited circumstances. That's what sets us apart from the rest. This portal allows providers to apply for and attest to relief fund payments made for healthcare-related expenses or lost revenue attributable to COVID-19. HRSA is using Medicare reimbursement rates in calculating these payments. Recipients of these funds must follow rigorous guidelines for attestation, use, tracking and reporting, but there is one more compliance obligation that may fall under the radar of many providers: a single audit over a certain expenditure threshold ($750,000 or more). Policymakers should continue to ensure that these types of hospitals are sufficiently funded, potentially with additional rounds of funding, the researchers wrote. Funding for Health Care Providers During the Pandemic: An Update Here are some notable trends showing how lower levels of government have spent some of their relief funds. 116-139). Healthcare providers must report Provider Relief Fund payments on the cost reports statement of revenues for informational purposes. For more information on cookies and how we use them, view our Cookie Policy. The Provider Relief Fund, administered by the Department of Health and Human Services, distributes payments to hospitals and other healthcare providers on the front lines of the coronavirus response. The provider would need to estimate the reimbursement based on the methods utilized by the Medicare and Medicaid program in the state in which the provider is operating (i.e. It is called a single audit because it is a standardized approach used by all federal agencies, covering financial statements and records, expenditures and internal controls, as well as elements specific to the grant itself. As urged by the AHA, HHS begins distribution of critical COVID-19 relief funds. The annual audit broadly takes stock of an organizations financial position, whereas the single audit reviews a targeted funding source for allowable costs incurred within the allowable time period and proper reporting to HHS. In perhaps the most notable distinction between traditional and single audits, financial statements and findings (including deficiencies) will be made public as part of the standard process. Have questions about single audits and PRF payments? You can find more information about the terms and conditions here. FACT SHEET: President - The White House Providers received automatic payments and/or applied for payments. AllRightsReserved. PDF PRF Reporting Portal User Guide - Registration - Health Resources and Payments from the Provider Relief Fund (PRF), distributed at the federal and state level as part of the CARES Act, offered a much-needed financial boost to healthcare providers impacted by coronavirus. The Provider Relief Fund (PRF) was established in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 5 under the Cost Reporting section, healthcare facilities should not offset Small Business Administration loan forgiveness amounts against expenses unless those amounts are attributable to specific claims such as payments for the uninsured. To date, HHS has allocated $147 billion of that amount in the following ways: Of those allocations, $96 billion has been disbursed through October 30, 2020. In addition, providers need to make sure PRF are not used to reimburse expenses or losses that other sources have reimbused or are obligated to reimburse. On March 27, 2020, $100 billion was allocated to the fund as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the third and largest phase of legislation designed to lessen the economic impact of the coronavirus (COVID-19) pandemic. The average payment for small providers is $58,000, for medium providers $289,000, and for large providers $1.7 million. The single audit requirement kicks in for grantees who spend more than $750,000 in federal dollars in any given year. According to the CMS Q&A, if, within the 1-year time limit, the provider furnishes to the contractor sufficient written justification (based upon documented evidence) for nonpayment of the liability, the contractor may grant an extension for good cause. The Health Resources and Services Administration this week openedthe Provider Relief Fund reporting portal through Dec. 2 for health care providers authorized to report late on how they used PRF payments received between Jan. 1 and June 30, 2021 that totaled over $10,000. Here's a Summary. 0 You can register here to attend. Here's Why It Could Be Even Higher. 2 of the Cost Reporting section. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. The single audit required by the U.S. Department of Health and Human Services (HHS), and potentially state health departments, will add compliance requirements to an organizations annual audit that will require more time and resources. 338(h)(10) Transaction Structure: Pros and Cons for Sellers and Buyers, Be Aware of Changes to Individual Charitable Giving for 2022 Tax Year, Pennsylvania Sales and Use Tax for Construction Contractors and Their Customers. CARES Act Coronavirus Relief Fund frequently asked questions Smaller providers will be reimbursed at a higher percentage of losses and expenses as compared to larger providers. 2023 by the American Hospital Association. She has been a reporter for The Times since 1995. 2023 by the American Hospital Association. The deferral applies to those deposits and payments that a provider would need to make from March 27, 2020, through December 31, 2020. part-time provider, divide the total hours worked by the provider by the total number of hours that your organization considers to be a normal workweek. The havoc caused by the Delta variant has further strained many hospitals, overwhelming intensive care units and forcing some to renew delays in elective treatments. 116-136) and appropriated $100 billion "to reimburse, HRSA also will host a recorded webcast July 8 at 3 p.m. The CARES Act imposed certain reporting obligations on PRF recipients and authorized HHS to impose additional . document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This website uses cookies. The analysis of 952 hospitals found that 24 percent received less than $5 million, while 8 percent got more than $50 million. How Much Will the Debt Ceiling Deal Reduce Deficits? Provider Relief Provider Relief Program Update: June 2023 With the passage of the Fiscal Responsibility Act of 2023 and related rescission of program funds, no further payments will be made to providers under the Provider Relief Fund or the American Rescue Plan Rural Distribution, including no reconsideration payments.