On September 10, 2021, the Department of Health and Human Services (HHS) announced $25.5 billion of additional funding will become available for healthcare providers affected by the COVID-19 pandemic. The funding is split between two funds: the American Rescue Plan (ARP) and the Provider Relief Fund Phase 4 (PRF). $8.5 billion from the ARP will be available for providers that serve Medicaid, Children’s Health Insurance Program (CHIP), and Medicaid patients in rural areas. The PRF will provide the other $17 billion available for a wide range of providers that can provide evidence of revenue losses due to the pandemic between July 1, 2020 and March 31, 2021. Providers with a smaller number of patients and providers that serve Medicaid, CHIP, and Medicare patients are eligible for bonus payments.
Here are the highlights:
- Healthcare providers can apply for $25.5 billion in relief funds starting September 29, 2021.
- Phase 4 payments will be based on providers’ lost revenues and expenditures between July 1, 2020, and March 31, 2021.
- Phase 4 payments will reimburse smaller providers at a higher rate than larger providers and include bonus payments for providers who serve Medicaid, CHIP, and/or Medicare patients, who tend to be lower income and have greater and more complex medical needs.
- Providers can apply for both the PRF and ARP programs in one application.
For more information, read the press release from the Department of Health and Human Services: https://www.hhs.gov/about/news/2021/09/10/hhs-announces-the-availability-of-25-point-5-billion-in-covid-19-provider-funding.html