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October 09, 2020

HHS Announces $20 Billion in New Phase 3 Provider Relief Funding

On October 1, 2020, HHS announced $20 billion in funding for a Phase 3 General Distribution for providers under the Provider Relief Fund, which will take into consideration financial losses and changes in operation expenses caused by the coronavirus. Providers applying for a Phase 3 distribution are now eligible to (1) receive a distribution payment equal to 2 percent of their total patient care revenue based on their most recent tax filing and (2) be considered for additional funding addressing financial losses and changes in operating expenses caused by the coronavirus. Phase 3 eligibility requirements are quite broad and inclusive to many different healthcare providers so long as the provider has been active as of March 31. Providers who began practicing in 2020 and were ineligible for previous funding, and behavioral health providers, are now invited to apply for funds available in this round of funding on a first come, first served basis. Providers who previously received a General Distribution Provider Relief Fund payment may apply to receive an “equitable add-on payment” from the Phase 3 funding as well. While HHS has indicated that payments will likely not be immediate, and time will be needed to process the applications, the application deadline is November 6. HHS is encouraging applicants to apply early in order to expedite the review process, payment calculations, and distribution of payments.