Providers that have previously received more than $10,000 in provider relief funds (PRF) from the Coronavirus Aid, Relief, and Economic Security (CARES) Act knew that they would need to account for how those funds were used. However, the manner of reporting and the details related to the same had not been detailed by HHS. The recent reporting guidance from HHS provided some additional details to providers.

Guidance highlights include:

New Deadlines

Originally the portal for reporting use of PRF was to be opened October 1, 2020 with reports due by December 31, 2020. Recognizing that the reporting guidance came out over a month later than initially anticipated, the reporting portal will now not be open until January 15, 2021. The first report is due February 15, 2021.

Funds will need to be spent by June 30, 2021 with a second report documenting the use of funds between December 31, 2010 and June 30, 2021 due by July 31, 2021.

Revised Calculations for Lost Revenue

Previously the HHS FAQs had stated that lost revenue could be calculated by comparing 2020 actual revenue with 2020 budgeted revenue or revenue from 2019. Pursuant to the new guidance, lost revenue will now be calculated by considering net patient care operating income net of healthcare related expenses attributable to coronavirus.

Also, there is a limit on what can be designated as lost revenue. Recipients of funds can only apply fund payments up to the amount of their 2019 net gain from healthcare related sources.

Limitations

The reporting requirements do not apply to the Nursing Home Infection Control distribution or the Rural Health Clinic Testing distribution. Separate reporting requirements related to the use of these distributions will be forthcoming.

Other Items of Interest

• Any provider that received more than $500,000 in PRF will need to provide additional detailed information regarding the use of the funds. Specifically, such providers will be requested to provide details regarding: (a) Mortgage/rent; (b) Personnel expenses, (c) Utilities (d) Supplies, (e) Equipment;(f) other governmental assistance received; and (g) Operational information such as number of patients and employees.
• If a parent entity that received PRF has a subsidiary that also received “General Distribution” PRF (also known as “first round” or “first tranche” funds) the reporting entity may report how the funds were used by parent and subsidiary, regardless of which entity attested to accepting the PRF. However, if a subsidiary received “Targeted Distribution” payments such as Skilled Nursing Facility Allocations or Safety Net Hospitals Distributions, then the subsidiary, not the parent, should report how the PRF were used.

We are still awaiting guidance regarding how to return funds that are not spent.

Expect further changes and instructions as we get closer to the January 15, 2021 deadline. HHS plans to offer Question & Answer Sessions via webinars in advance of the reporting deadline and additional information will be provided in the HHS Provider Relief Fund FAQ document.