$25.5 billion designated to healthcare providers through PRF

Healthcare providers could soon have access to $25.5 billion in federal funding as part of Phase 4 of the Provider Relief Fund (PRF).

Most of the Phase 4 resources – $17 billion – are designated for a “broad range of providers who can document revenue loss and expenses associated with the pandemic,” according to the Health Resources and Services Administration (HRSA). The remaining $8.5 billion will come via the American Rescue Plan (ARP) to support providers serving rural patients through Medicaid, Medicare, or the Children’s Health Insurance Program (CHIP).

The application process will open on Sept. 29.

Before Friday’s round of funding, the HRSA and U.S. Department of Health and Human Services (HHS) program had designated more than $118 billion for healthcare providers hardest hit during the COVID-19 pandemic. The first round of funding ($46 billion) was delivered in April 2020.

Phase 4 was designed specifically to reimburse smaller providers, according to the HRSA, particularly those that “tend to operate on thin margins and often serve vulnerable or isolated communities.”

In addition to the Phase 4 announcement, the HRSA added two PRF-related items:

• HHS provided new insight to its system that was used to calculate Phase 3 payments. It also granted providers a chance to ask for their Phase 3 payment amount to be reconsidered if they believe it was incorrect.
• HHS confirmed a new 60-day grace period to help providers comply with PRFT reporting standards; the deadline had been September 30, 2021.

If you have questions about PRF funding or payments, reach out to the KraftCPAs healthcare industry team for information.

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