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Volume X, Number 193

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July 09, 2020

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CMS Makes Initial Distribution from CARES Act Provider Relief Fund

If you are a health care provider, you may have received a direct deposit identified as “HHSPAYMENT” into your business bank account in the past week.  The funds are being disbursed in order to provide financial assistance to health care providers that have been impacted by the Covid-19 pandemic.  The funds distributed to providers are grants, rather than loans.  Therefore, providers who meet the conditions for receipt of these funds will not have to repay them.  Payments are based on the amount of a provider’s share of total Medicare fee for service payments in 2019.

While CMS did not require providers to submit an application in order to receive a CARES Act Provider Relief Fund payment, providers who receive such funds are required to submit an attestation which: (1) confirms their receipt of the funds and (2) accepts the Terms and Conditions for the receipt of the funds.

The Terms and Conditions require provider recipients  to certify that they: (1) billed Medicare in 2019; (2) after January 31, 2019, provided (or are providing) diagnoses, testing, or care for individuals with possible or actual cases of Covid-19; and (3) are not currently terminated or excluded from participating in Medicare, Medicaid, and other Federal health programs, and do not have their Medicare  billing privileges revoked.  Recipients must also certify that the payment will be only be used to prevent, prepare for, and respond to coronavirus, and must also certify that the payment will reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Recipients must certify that they will not use the funds to pay for expenses that have been reimbursed (or will be reimbursed) by other sources.   In addition, recipients must certify that they will not balance bill patients for any out of pocket expenses greater than those that the patient would be required to pay if the care had been provided by an in-network recipient.   The full list of Terms and Conditions can be found here.  The attestation statement that recipients will need to submit can be found here.   The Terms and Conditions also specify that recipients will be subject to reporting requirements.

CMS has indicated that eligibility for funding is not limited to providers who have treated confirmed cases of Covid-19. CMS indicated that it views every patient as a possible case of Covid-19.  Therefore, if a recipient provided diagnoses, testing, or care for individuals with possible or actual cases of COVID-19 (whether or not the care provided was specific to treatment of a confirmed Covid-19 case), they are eligible for funding.

CMS has also announced that more funding is planned for those areas hardest-hit by the Covid-19 pandemic.  If you are a provider who has received a CARES Act Provider Relief Fund payment, you will need to review the terms and conditions and submit an attestation confirming that you are in compliance with the Terms and Conditions within 30 days of the date that you received the payment. If a provider cannot comply with the terms and conditions, the funds must be returned.

© 2020 Giordano, Halleran & Ciesla, P.C. All Rights Reserved National Law Review, Volume X, Number 108

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About this Author

Frank R. Ciesla, Giordano Law Firm Health Care Litigation Health Care Fraud and Abuse Tax Health & Hospital Law
Of Counsel

Mr. Ciesla is Chair Emeritus of the firm's Health Care Law Practice Area. His practice is primarily devoted to Health Care and Government Contracts Law. He counsels clients on legal developments facing healthcare providers in the modern health care environment. Firm clients include hospitals, nursing homes, physicians and physician groups, individual practice associations, home health agencies, ambulance carriers and industry-wide associations.

Mr. Ciesla advises such clients on business structures, mergers and consolidations, joint ventures, reorganization of health care providers...

732-741-3900
Beth Christian, Giordano Law firm, Health Care Attorney,Health Care Fraud and Abuse, Cannabis Law, Non-Profit Law
Shareholder

Ms. Christian's practice is devoted to Health Care Law and legal issues facing Health Care facilities licensed professionals and non-profit organizations. She has over twenty years of experience counseling clients on legal issues facing the modern health care and non-profit communities.

732-219-5485
Anjali Baxi, Giordano Halleran Law Firm, Healthcare Attorney, New Jersey health Law,Cannabis Law,Government Affairs,Business Transactions, Health Care Law Regulation, Medicare and NJ Medicaid Enrollment
Counsel

Anjali has been practicing law for 15 years, mainly focused on health care transactional and regulatory matters. She prepares and reviews LOIs, purchase agreements and other transaction documents for health care providers needed for the business transfer and necessary for the transfer of NJDOH and NJDHS licenses and provider numbers. She also reviews agreements required for the day to day operations of health care facilities.

She has counseled skilled nursing, assisted living, adult medical day care, outpatient facility clients and hospitals regarding NJDOH regulatory requirements,...

732-741-3900
Ari G. Burd, Shareholder, Giordano Law Firm, Labor & Employment, Cannabis Law, Health Care
Shareholder

Ari devotes his time to assisting and defending employers with regard to traditional employment issues. He frequently counsels employers for compliance with New Jersey laws and has extensive transactional and litigation experience.

Ari has litigated employment matters throughout the state, having made appearances in almost every Superior Court in New Jersey, as well as before both Federal District Courts in New Jersey and the Federal and State Courts in New York.  These actions have involved a diverse range of claims such as wrongful discharge, discrimination, harassment,...

732-741-3900