Healthcare providers have a sense of relief following the announcement from the U.S. Department of Health and Human Services (HHS) that reporting requirements for Provider Relief Fund (PRF) use of funds were no longer required to be submitted by February 15, 2021. This announcement comes after the Coronavirus Response and Relief Supplement Appropriations Act was passed in December 2020, requiring HHS to revisit reporting guidelines to ensure compliance with the new legislation.
The impacts of these new reporting requirements give providers additional flexibility in how lost revenue calculations are determined, likely resulting in favorable outcomes. After applying PRF payments to coronavirus expenses, providers can then apply remaining funds to lost revenues related to patient care. In calculating lost revenue, providers can elect to utilize any of the following three methods of applying PRF payments:
- Difference between 2019 and 2020 actual patient revenue. The submission must also be accompanied by the providerâ€™s 2019 Revenue from Patient Care Payer Mix, detailed by quarter.
- Difference between 2020 budgeted and 2020 actual patient care revenue. The providerâ€™s CEO or CFO must also attest that the budget submitted was approved prior to March 27, 2020.
- Alternate methodology for calculating lost revenue as a result of coronavirus. Required documentation includes a summary of the methodology, justification for why it is deemed reasonable, and details regarding how the decrease in revenue is a result of coronavirus.
In addition to use of fund reporting requirements, providers are required to report interest earned on PRF payments held in an interest-bearing account. Although HHS has not yet provided a due date for the registration process or submission of reporting requirements, providers are encouraged to establish an account on the HHS online portal and complete the registration process as soon as possible. For questions regarding the most recent Provider Relief Fund reporting requirements, please contact REDW Principal Chris Tyhurst, Senior Manager Claire Hilleary or Audit and Consulting Manager Emily Wilson.
REDW is committed to keeping you informed at all times, and especially through the impacts of the COVID-19 pandemic.Â Stay connected with us onÂ LinkedInÂ andÂ @REDWLLCÂ on Twitter. Access some of our other updates on ourÂ COVID-19 Resource Hub.