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Use of CARES Act Provider Relief Funds
/in COVID-19By Kim Stanger
Healthcare providers who received or receive payments from the CARES Act Provider Relief Fund (“PRF”) may only use the payment for permissible purposes, must document and report the proper use, and return any excess funds to HHS. This alert summarizes the most recent guidance we have concerning these important issues.
Permissible Uses. The PRF includes both General Distributions (to all eligible providers) and Targeted Distributions (to specific provider segments, such as certain rural hospitals, hospitals in high impact areas, and skilled nursing facilities). Under the PRF Terms and Conditions applicable to each,1 Recipients of the PRF Payments must certify “that the Payment will only be used to prevent, prepare for, and respond to coronavirus, and that the Payment shall reimburse the Recipient only for health care related expenses or lost revenues that are attributable to coronavirus.” (See, e.g., https://www.hhs.gov/sites/default/files/terms-and-conditions-provider-relief-20-b.pdf, emphasis added). Read more
Medical Decision-Making for Incapacitated Adult Patients Under Utah Law
/in State Law UpdatesBy Kristy M. Kimball and Lisa Carlson
Healthcare providers generally are required to have an adult patient’s consent before they can administer any type of medical care, which raises the question: Who has the authority under Utah state law to make medical decisions on behalf of an unconscious (or otherwise incapacitated) adult patient. In treating patients with COVID-19, this concern is particularly relevant, as an intubated patient will be sedated and unable to participate in their own medical decision-making. Therefore, it is critical that healthcare providers determine who holds such authority under the applicable state laws. Read more
Rural Hospitals Receive Next Round of Provider Relief Funds
/in ProvidersBy Kim Stanger
This week, rural providers began receiving the next round of Provider Relief Funds as authorized by the CARES Act. Recipients include rural acute care general hospitals, critical access hospitals (“CAHs”), rural health clinics (“RHCs”), and community health centers located in rural areas. Rural hospitals and CAHs may receive a minimum of $1,000,000 plus additional amounts based on a percentage of their annual expenses. RHCs and CHCs will receive a minimum of $100,000 plus an additional amount based on their operating expenses. The funds are generally made by direct deposit. The disbursement is described here. Read more
HHS Updates Recently Issued Provider Relief Fund Terms and Conditions
/in Hospitals & Health Systems, ProvidersBy Kim Stanger
HHS has updated the Terms and Conditions and websites for two key portions of its Provider Relief Fund programs.
1. Provider Relief Funds. Over the weekend, HHS updated the Terms and Conditions and posted FAQs concerning the Provider Relief Fund, available here: https://www.hhs.gov/coronavirus/cares-act-provider-relief-fund/index.html. The new Terms and Conditions apply to the $50 billion General Distribution funds that have gone out and will go out over the next few weeks, and reaffirm reporting requirements as well as potential fraud and abuse liability for failing to comply. See https://www.hhs.gov/coronavirus/cares-act-provider-relief-fund/terms-conditions/index.html. HHS also opened the portal for those entities entitled to apply for additional General Distribution funds. https://covid19.linkhealth.com/docusign/#/step/1. The FAQs provide detailed information concerning eligibility, requirements, and information necessary to apply for additional funds. https://www.hhs.gov/sites/default/files/20200425-general-distribution-portal-faqs.pdf. Significantly, those who received the a portion of the $20 billion disbursement last week must still provide information confirming their patient revenues as well as attest to the updated Terms and Conditions relevant to that program. Read more
More Provider Relief Funds On the Way: Beware Updated Terms and Conditions
/in Health Information, TelehealthBy Kim Stanger
On April 22, 2020, HHS announced specifics concerning the next round of the $100 billion Provider Relief Fund payments, some of which should reach provider bank accounts today. https://www.hhs.gov/coronavirus/cares-act-provider-relief-fund/index.html. As with the initial $30 billion, the additional payments come with more strings attached.
Additional Payments.
1. General allocation. An additional $20 billion will go to providers who rendered diagnoses, testing or care of individuals with possible or actual cases of COVID-19 after January 31, 2020, including such providers who were largely left out of the initial $30 billion disbursement. The initial $30 billion was allocated based on the providers’ 2019 Medicare fee for services payments. The next $20 billion will also reach providers who receive only a small amount of Medicare revenue, e.g., children’s hospitals. The $20 billion will be allocated so that the combined $50 billion in payments reflects the providers’ 2018 net patient revenue.
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