The Department of Health and Human Services (HHS) on Tuesday said it will be releasing $9 billion in Provider Relief Fund (PRF) Phase 4 payments to health care providers, including nursing homes.
Payment will be disbursed later this week, HHS said in a statement.
Small providers are expected to receive on average $58,000 – medium and large providers are expected to get average payments of $289,000 and $1.7 million, respectively. More than 69,000 providers across all 50 states, Washington, D.C. and eight territories will receive payments.
California is receiving the biggest piece of the pie at upwards of $894 million to be disbursed between 9,377 providers.
Operators that receive more than $10,000 must notify HHS of a merger or acquisition. An audit will be more likely too, HHS said, to make sure funds are used appropriately.
The $9 billion is in addition to $8.5 billion tied to the American Rescue Plan (ARP); such funds are reserved for rural providers with Medicare and Medicaid beneficiaries. ARP payments are also designed for the Children’s Health Insurance Program (CHIP).
Funding totals $25.5 billion and should be used to recruit and retain staff, purchase masks and other personal protective equipment (PPE), modernize facilities, along with other activities to respond to COVID-19, the Biden administration has said.
About 75% of Phase 4 funding will be disbursed based on expenses and decreased revenue between July 1, 2020 and March 31, HHS said.
Smaller providers will receive a higher percentage of reimbursement tied to losses and expenses from the Health Resources and Services Administration (HRSA).
Such providers “entered into the COVID-19 pandemic on worse financial footing, have historically operated on slimmer financial margins, and typically care for vulnerable populations – as compared to larger providers,” HHS said in its statement.
In an effort to further support health equity, 25% of Phase 4 funding will be distributed as a “bonus” based on the amount and types of services rendered to Medicare, Medicaid and CHIP patients. HRSA is using reimbursement rates to calculate these payments, HHS said, to account for rate disparities across various communities.
In a separate memo, HHS said it reopened the federal PRF portal through midnight onDec. 20, citing problems reported with the online system. Providers can call (800) 569-3522 to access submitted reports.
Nursing homes can amend submitted reports for Period 1 while the portal is open, something operators should consider, national advocacy group LeadingAge told its members on Friday.
Operators expressed concern to LeadingAge about reporting timing – if all infection control expenses were reported in the first period, operators would not have enough infection control-related expenses to submit in Period 2.
The reopened portal presents an “opportunity” to better apply expenses between the first and second reporting periods.
“Infection control expenses are the only eligible use for Nursing Home Infection Control (NHIC) distributions and quality incentive payments issued through PRF,” LeadingAge said.
HRSA has since clarified that facilities may choose how and when to apply for infection control expenses.
