As the COVID-19 pandemic rages, hospitals and other providers struggling to provide care may soon be able to receive extra funding. On Sept. 10, the U.S. Department of Health and Human Services (HHS) announced that it would offer $25.5 billion in new funding to health care providers affected by the pandemic through the Health Resources and Services Administration (HRSA). This includes $8.5 billion in additional American Rescue Plan (ARP) funding and an additional $17 billion in Provider Relief Fund (PRF) Phase 4 payments for providers who can document lost revenue and added expenses linked to the pandemic.
PRF Phase 4 Payments
The PRF Phase 4 payments are based on providers' lost revenues and expenditures between July 1, 2020 and March 31, 2021. Smaller providers will be reimbursed at a higher rate than large providers. The payments will also include bonus payments for providers who serve Medicaid, CHIP or Medicare patients. HRSA will price these bonus payments at the generally higher Medicare rates to ensure equity for providers who serve low-income children, pregnant women, people with disabilities, and seniors.
ARP Payments
The ARP funds will be paid to providers based on the amount of Medicaid, CHIP or Medicare services provided to patients who live in rural areas as defined by the HHS Federal Office of Rural Policy. HHS notes that rural providers often serve a disproportionate number of Medicaid and CHIP patients who have complex medical needs, and rural communities have been hit particularly hard by the pandemic.
The application portal for these funds will open on Sept. 29. To fast-track the application process, HRSA will use existing Medicaid, CHIP and Medicare claims data to calculate payments. Providers can find more information about eligibility requirements and the application process on the HRSA website.
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