HHS Announces $9 Billion in COVID Relief Funds; Updates Terms and Conditions of Payments
- December 17, 2021
The Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), will begin next week to distribute approximately $9 billion in Provider Relief Fund (PRF) Phase 4 payments to health care providers who have experienced revenue losses and expenses related to the COVID-19 pandemic, HHS said December 14.
According to the agency, the average payment for small providers is $58,000, for medium providers is $289,000, and for large providers is $1.7 million.
“As we continue to fight the pandemic, the Biden-Harris Administration remains committed to supporting our health care providers on the front lines,” HHS Secretary Xavier Becerra said. “This vital funding will ensure critical health care services are delivered to communities across the country–including to those who are disproportionately impacted by the pandemic and medically-underserved. We will continue to make health care accessible for everyone who needs it and reach people where they are.”
Consistent with the administration’s focus on health equity and supporting the most vulnerable communities, HRSA is distributing 25% of Phase 4 funding as “bonus” payments based on the amount and type of services provided to Medicare, Medicaid, or CHIP patients, according to a press release.
HHS also has updated the Terms and Conditions for Phase 4 and American Rescue Plan Rural payments to ensure relief funds are being used to address the financial impact of COVID-19.
According to HHS, recipients whose payments exceed $10,000 are required to notify HHS of a merger with or acquisition of any other health care provider. “Providers who report a merger or acquisition may be more likely to be audited to ensure compliant use of funds,” the agency said.