July 24, 2021

Volume XI, Number 205

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HHS Extends Timeline for Spending Provider Relief Fund

The U.S. Department of Health and Human Services (HHS) has issued new guidance extending the timeline for health care providers that received more than $10,000 in payments from the Provider Relief Fund (PRF) to expend and report the funds. While the terms and conditions attached to the PRF funds did not specify a deadline for using the funds, HHS had previously informed providers that all funds must be used by June 30, 2021, and that funds not used by this date would be subject to recoupment. The new guidance extends the timeline for use of PRF payments received after July 1, 2020. HHS has also updated its PRF FAQs.

The new deadlines for use and reporting of PRF funds are staggered based on when the funds were received. Funds are available to be expended for at least 12 months and a maximum of 18 months from the date of receipt. Recipients should review their financial records to determine the deposit date for the automated clearing house payment or the check cashed date, which will determine when the payments were received.

PERIOD

PAYMENT RECEIVED

DEADLINE TO USE FUNDS

REPORTING TIME PERIOD

Period 1 

April 1, 2020 to
June 30, 2020 

June 30, 2021 

July 1, 2021 to
September 30, 2021 

Period 2 

July 1, 2020 to
December 31, 2020 

December 31, 2021 

January 1, 2022 to
September 30, 2022 

Period 3 

April 1, 2020 to
June 30, 2020 

June 30, 2022 

July 1, 2022 to
September 30, 2022 

Period 4 

July 1, 2020 to
December 31, 2020 

December 31, 2022 

January 1, 2023 to
September 30, 2023 

The extended deadlines will be welcome news to many providers that received PRF funds, allowing them to continue funding ongoing operations to prepare for, prevent, and respond to coronavirus. A number of questions remain about the reporting and permissible use of the PRF funds, including whether the new reporting periods will modify prior instructions on calculating lost revenue. Additional information from HHS, including supporting worksheets to be completed by reporting providers, should be released in connection with the opening of the reporting portal on July 1, 2021, for the Period 1 payments.

© 2021 Foley & Lardner LLPNational Law Review, Volume XI, Number 165
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About this Author

Anil Shankar, Foley Lardner, Health Care Lawyer, Attorney, Legislation
Partner

Anil Shankar is a Partner with Foley & Lardner LLP. He focuses his practice on complex regulatory and reimbursement matters, with a particular focus on the Medicaid program and issues affecting safety net providers. He has conducted extensive research and advised clients with regard to the implementation and development of Medicaid demonstration projects, and has analyzed opportunities for, and helped to implement, Medicaid supplemental payments. Mr. Shankar routinely advises clients on new developments in the Medicaid program, including issues related to Medicaid...

213-972-4584
Alexis Bortniker, Health Care Attorney, Foley Lardner Law Firm
Partner

Alexis Bortniker is a Partner and health care lawyer with Foley & Lardner LLP. Her practice focuses on transactional and regulatory matters with an emphasis on counseling health systems, hospitals, and other providers in managed care and physician contracting. Ms. Bortniker is a member of the firm’s Health Care Industry Team.

Previously, Ms. Bortniker was an associate with Choate Hall & Stewart LLP where she gained experience working directly with health care organizations on regulatory and corporate compliance issues, including the...

617.226.3177
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