If your practice received more than $10,000 from the Department of Health and Human Services per payment received period via the Provider Relief Funds program you are required to report how those funds were used. Reporting begins July 1st, and deadlines for reporting are based upon when the funds were received.
The funds were eligible for use for two purposes:
General and Administrative expenses and/or Healthcare related expenses to prevent, prepare for, and/or respond to COVID.
Lost revenues from patient care (2019 actual patient care revenues minus 2020 actual patient care revenues, or vs. budgeted)
WHAT YOU NEED TO DO
Register via the PFR reporting HHS portal. You’ll submit the reporting online via the portal. You can register now, however, reporting won’t be accepted until July 1, 2021. See the table above for more information on the reporting timeline.
Know what expenses can be applied towards the Provider Relief Funds you received (link here to a pdf of allowable expenses)
You will need to list other COVID relief you received such as PPP Loans and cannot use the same expenses for the HHS funds and used for the PPP loans or other relief.
Any funds received not used towards lost revenues from 2020 vs 2019 or accepted General and Administrative expenses and/or Healthcare related expenses will need to be paid back.
Submit the report online based on the reporting time period (table 2 above).
A full overview of the reporting requirements can be found here
GUIDANCE
Determine the amount of lost revenues from patient care- The easiest way to report the use of these funds is going to be applying any amounts you had in lost revenue due to patient care from 2020 vs. 2019.
You can determine this number in your December 2020 Monthly Report in your Sharefile folder (The Profit & Loss Statement will show Total Income for the year as well as the comparison to 2019. “This Year vs. Last Year” Column under Total Income (not total revenues) will have the difference from 2020 vs. 2019. If that amount is negative, you can report that amount towards the Provider Relief Funds.
If the decrease in patient care revenue from 2020 vs. 2019 is greater than Provider Relief Funds you received, you can report that all of the Provider Relief Funds received were used to replace that lost revenue.
For example if you received $32,000 in Provider Relief Funds and you had a decrease in patient care revenue of $55,000 from 2020 vs. 2019. You can report the entire $32,000 was used to replace those lost revenues.
If the decrease in patient care revenue from 2020 vs. 2019 is LESS than the amount you received in Provider Relief. Make a note of other eligible expenses.
For example if you received $32,000 in Provider Relief Funds and you had a decrease in patient care revenue of $22,000 from 2020 vs. 2019. You can report $22,000 was used to replace those lost revenues and you’d need to allocate the additional $10,000 received towards eligible COVID related expenses.
We created a simple template to calculate and allocate the Provider Relief Funds. Video overview and link to the template is here.
Link to Template (In the sheet, click file, download, select Excel to download in excel format if you’d like to use the template to calculate).
Reporting is by period received. If you received more than $10,000 in multiple periods (see table 2 above) you would need to file a report for each in the respective reporting period.
LINKS
As always, please let us know with any questions as we are happy to look up any numbers for you.