HHS announces new round of provider relief payments

Oct. 2, 2020

The U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), is allocating $20 billion in new funding for Provider Relief Fund payments, according to a press release.

Providers who have already received Provider Relief Fund payments will be eligible to apply for additional funding that considers financial losses and changes in operating expenses caused by the coronavirus, HHS said. Previously ineligible providers, such as those who began practicing in 2020, will also be eligible to apply, and an expanded group of behavioral health providers confronting the emergence of increased mental health and substance use issues exacerbated by the pandemic will also be eligible for relief payments.

Providers will have from October 5 through November 6 to apply for Phase 3 General Distribution payments.

Funding for this Phase 3 General Distribution was appropriated through the bipartisan CARES Act and the Paycheck Protection Program and Health Care Enhancement Act. HHS has issued more than $100 billion in relief funding to providers through prior distributions. For eligible providers, the new Phase 3 General Distribution is designed to balance an equitable payment of 2 percent of annual revenue from patient care for all applicants plus an add-on payment to account for revenue losses and expenses attributable to COVID-19.

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