Reingruber Alert: CARES Act Provider Relief Fund
4/15/2020 - By Claudia Reingruber, CPA, CHC
$30 Billion in Relief Funds will be Distributed to All Medicare Providers
- Many Medicare providers have already received their share of the $30 billion
- Per HHS, these funds will provide immediate relief to both -
- Providers in areas heavily impacted by COVID-19, and
- Providers struggling to keep their doors open due to patients delaying care and canceled elective procedures
- How payments are computed and distributed
- All providers who received Medicare FFS payments in 2019 are eligible
- Funds will be distributed via direct deposit beginning April 10, 2020
- Payment is based on a provider's percentage of total Medicare payments in 2019 times $30 billion
- Payments are made to providers based on their Taxpayer ID Number
- Deposits will be from Optum Bank with "HHSPAYMENT" as description
- These payments are different than the CMS Advance Payment Program
- Some key points regarding these funds are as follows:
- These funds are a payment, not a loan
- Funds can only be used:
- To prevent, prepare for, and respond to coronavirus
- To reimburse provider only for health care-related expenses or lost revenues attributable to coronavirus
- Funds cannot be used to reimburse expenses or losses covered by relief funds from other sources (such as from the PPP)
- Each provider must sign an attestation within 30 days confirming receipt and agreeing to certain conditions
- Click here to review the Payment Terms and Conditions
Proper Accounting of the Use of the CARES Relief Funds is Critical
- Any recipient of more than $150,000 will be required to submit Quarterly Reports including specifics as to how the funds were used
- Reports must be submitted to the "Pandemic Response Accountability Committee" and the Secretary of HHS
- HHS will issue specific reporting instructions to all recipients
- Providers must establish proper accounting procedures to support:
- How these and other relief funds were used
- There was no overlap in the use of funds from other relief programs
- Adherence to Terms and Conditions and other legal requirements
- Audits by HHS, OIG, or Pandemic Response Accountability Committee are planned
- For more information on the CARES Act Provider Relief Fund, click here.
The Healthcare Division at Saltmarsh can help you:
- Establish proper accounting procedures for COVID-19 Relief Funds
- Ensure policies and procedures are in place to define appropriate fund use
- Implement reporting procedures when instructions are issued by HHS
- Benefit from available relief programs to remain viable during the pandemic
QUESTIONS?
If you have questions about your particular circumstances, please contact our team or call (800) 477-7458.
Visit our COVID-19 RESOURCE HUB for ongoing updates and information. Due to the ever-changing nature of this event, you should always consult a professional.
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