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.