On October 1, 2020, the Trump Administration announced $20 Billion in new Phase 3 provider relief funding after collaborating with the U.S Department of Health and Human Services (HHS). The Phase 3 General Distribution allocation allows providers who have already received Provider Relief Fund payments to apply for additional funding that considers financial losses and changes in operating expenses caused by COVID-19. Those who began practicing in 2020 and a newly expanded group of behavioral health providers dealing with problems exacerbated by COVID-19 will also be invited to apply.

The application for funding opened on Monday, October 5, 2020 and will close on November 6, 2020.

Eligibility-

  • Providers who previously received, rejected, or accepted a General Distribution Provider Relief Fund payment. Providers that have already received payments of approximately 2% of annual revenue from patient care may submit more information to become eligible for an additional payment.
  • Behavioral Health providers, including those that previously received funding and new providers.
  • Healthcare providers that began practicing January 1, 2020 through March 31, 2020. This includes Medicare, Medicaid, CHIP dentists, assisted living facilities, and behavioral health providers.

Payment Methodology– APPLY EARLY

Eligible providers will be considered for payment against the criteria below:

  • Provider submissions will be reviewed to confirm they have received a Provider Relief Fund payment equal to approximately 2% of patient care revenue from prior general distributions. Applicants that have not yet received Relief Fund payments of 2% of patient revenue will receive a payment that, when combined with prior payments, equals 2% of patient care revenue.
  • With the remaining balance of the $20 Billion budget, HRSA will then calculate an equitable add-on payment that considers the following:
  • The provider’s change in operating revenues from patient care.
  • A provider’s change in operating expenses from patient care, including expenses incurred related to COVID-19.
  • Payments already received through prior Provider Relief Fund distributions.

HHS is urging all who are eligible to apply early. Applying early will help to expedite HHS’s review process and payment calculations. This will ultimately accelerate the distribution of all payments.