Third Phase of CARES Provider Funding Begins
Dec 17, 2020
- The United States Department of Health and Human Services (HHS) began distributing the third phase of COVID-19 relief funding for providers Wednesday, December 16, with $24.5 billion to go to more than 70,000 providers through the end of January. Many providers had dollars hit their bank account Wednesday morning.
- The amount exceeds the original $20 billion planned for this tranche as officials realized more would be needed to get providers close to whole from coronavirus-related losses. HHS said up to 88% of applicants’ reported losses are being reimbursed.
- Recognizing the ongoing challenges for providers, HHS enhanced the Phase 3 distribution to consider the actual revenue losses and expenses experienced by providers that were attributable to COVID-19. Previously eligible Provider Relief Fund applicants were invited to apply for additional funding, along with first time applicants.
- It is worth noting that over 35,000 applicants will not receive an additional payment either because they experienced no change in revenues or net expenses attributable to COVID-19, or because they have already received funds that equal or exceed reimbursement of 88 percent of reported losses.
- Nursing homes will be receiving another $1.10 billion in Phase 3 funding. This builds on the half billon in incentive payments HHS recently announced and the over $15 billion in aggregate funding already distributed. Ambulance, or transportation services providers, will be receiving $1.48 billion in Phase 3 funding.
For a more in-depth overview of provider relief funds to date and how your organization can benefit, please see the video below.
Healthcare Advisory Services