July 12, 2020

Volume X, Number 194

July 10, 2020

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July 09, 2020

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$30 Billion Under CARES Act Comes With Strings Attached – What Do You Need To Know?

Under the CARES Act that was signed into law on March 27, 2020, $100 billion was allocated to “eligible health care providers” to provide financial relief for health care organizations in relation to the COVID-19 public health emergency. Many health care providers who have been struggling financially have been anxiously awaiting these funds, and on Tuesday, April 7, 2020, CMA Administrator Seema Verma announced that the first $30 billion of the $100 billion would be distributed this week.  Administrator Verma stated that this first round of distributions would be based on Medicare revenues and that there would be “no strings attached.”

Today, those funds were distributed, and thousands of health care providers have had monies automatically deposited into their bank accounts. At the same time, the Department of Health and Human Services (“HHS”) posted official guidance relating to these funds for the first time on its website. Suffice it to say: There are a number of strings attached, and many health care organizations are confused about what the terms and conditions related to the receipt of these funds means for them. For instance, the HHS website expressly states that “[t]hese are payments, not loans, to health care providers, and will not need to be repaid.” However, within 30 days of receiving the payment, providers must sign an attestation agreeing to 10 pages worth of Terms and Conditions. If a provider is not willing, or not able, to comply with the Terms and Conditions, then the provider must contact HHS within 30 days of receipt of the funds and remit the full payment in accordance with instructions provided by HHS. As with any situation where an entity is agreeing to terms and conditions in exchange for remuneration, health care organizations should review the terms and conditions closely to ensure that they can comply with them. Many questions have already arisen around eligibility for the funds and whether providers must be involved in the care and treatment of COVID-19 patients to be able to receive the monies.

© 2020 Dinsmore & Shohl LLP. All rights reserved.National Law Review, Volume X, Number 101

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About this Author

Timothy Cahill Health Care Attorney Dinsmore Law Firm
Partner Of Counsel

Tim is an attorney with more than two decades of experience in health care-related fields. He has worked as in-house counsel and external counsel for non-profit and commercial health care organizations, health systems, hospitals, physicians and physician groups, joint ventures, and other corporate clients. Most recently, Tim served in the role of general counsel of a regional health system, working closely with the executive team and board to further the organization’s strategic mission and significantly improve operating revenues.

In his practice, Tim has addressed a wide range...

614-227-4274
Noah J. Stern, Dinsmore Shohl, Corporate Governance Lawyer,
Partner

Noah J. Stern is a Partner in the Corporate Department. Noah's tax and estate planning practice involves advising individuals and businesses, including exempt organizations, corporations, partnerships, and limited liability companies. Noah's experience includes federal individual, partnership, and corporate tax planning, state and local tax matters, as well as disputes with the Ohio Department of Taxation and the Internal Revenue Service. Noah also does significant work with nonprofit organizations, including seeking and maintaining tax exempt status, maintaining publicly supported charity status, unrelated business taxable income issues, excess benefits transaction issues, and corporate governance matters. His practice also covers the business and regulatory aspects of health care law. He is a frequent speaker on tax and other legal topics, including engagements at several Southwestern Ohio Tax Institutes and an annual appearance at the Lawyers' Club of Cincinnati.

(513) 977-8460
Eric J. Plinke, Dinsmore Law, Health Care Lawyer, Corporate Attorney
Partner

Eric Plinke is a Partner in the Corporate Department and Health Law Practice Group, and he routinely advises corporate and individual clients regarding a wide-range of health care industry legal issues. He has counseled clients in practice formation and acquisition, hospital and joint venture transactions, hospital and medical practice affiliations, contract review and preparation, compliance programs, HIPAA regulations, scope of practice issues, telemedicine and Stark law and Anti-kickback statutes, as well as significant experience counseling in ambulatory surgery centers and other joint...

614-227-4213
Stacey A. Borowicz, Regulatory, Health care industry, attorney, Dinsmore Shohl,
Associate

Stacey Borowicz is an accomplished attorney who dedicates the majority of her business and regulatory practice to health care providers. Stacey brings with her more than a decade of front line experience in the health care industry as she acquired a rare set of skills as a medical researcher/scientist prior to entering the practice of law.

Stacey's experience in the healthcare representation is diverse and includes Medicare/Medicaid audit and overpayment appeals, voluntary disclosures and refunds. Stacey also brings a wealth of experience in...

614-227-4212
Jennifer Mitchell, health care practice group partner, Dinsmore Shohl, law firm,
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Jennifer is a Partner in the Health Care Practice Group and leads the firm’s HIPAA Privacy and Security practice and initiatives. In her HIPAA practice, she works with clients to minimize the risk of privacy and data security issues, assisting with all aspects of HIPAA privacy and security compliance, governance, audits/investigations, breach analyses, training and strategic planning. She has a thorough understanding of federal and state privacy and confidentiality laws and has served as a health care privacy expert witness. 

Within the...

513-977-8364