The Department of Health and Human Services (“HHS”) updated its Provider Relief Fund Frequently Asked Questions (“FAQs”). The latest revisions are dated May 26 and 29, 2020 and June 2, 2020 and include new FAQs and modifications to existing FAQs. A Hall Render alert on those revisions and updates is here.
HHS added FAQs specific to the recent Skilled Nursing Facility (“SNF”) targeted distributions.
SNF Distribution
HHS delivered nearly $4.9 billion from the Public Health and Social Services Emergency Provider Relief Fund (sometimes referred to as the CARES Act Provider Relief Fund) on May 22, 2020 to SNFs. See Hall Render’s alert on the distribution here. HHS intends for SNFs to use the funds to support nursing homes suffering from significant expenses or lost revenue attributable to COVID‑19. The funds may help SNFs address critical needs such as labor, testing capacity, acquiring personal protective equipment and a range of other expenses directly linked to the COVID-19 pandemic.
SNF Distribution FAQs
Three new FAQs were added related to the recent Relief Fund payment distributions to SNFs.
How Did HHS Determine the Amounts?
HHS made relief fund distributions to SNFs based on both a fixed basis and variable basis. Each SNF will receive a fixed distribution of $50,000, plus a distribution of $2,500 per bed.
The HHS distributions went to more than 13,000 SNFs. Eligible SNFs ranged in size of between 6 and 1,389 beds. This represents a range of distributions between $65,000 and $3,255,500 and a national average distribution of approximately $315,600 per SNF.
Which SNFs Received Payments?
HHS allocated funding for certified SNFs with a capacity between 6 and 1,389 beds.
How Were the Funds Dispersed?
Most SNF fund payments were dispersed electronically based upon banking account information associated with the organization’s billing TIN. If the SNF’s billing TIN does not have a bank routing number associated with it, the SNF will most likely receive a paper check.
Are There Conditions Required to Accept the Funds?
Yes, consistent with other distributions from the Provider Relief Fund, SNFs must attest that they will only use the funds for the permissible purposes described in a new set of Terms and Conditions specific to these payments. The Terms and Conditions are similar to the Terms and Conditions created for other Relief Fund payments and include certain obligations and restrictions attached to the receipt of payments, including complying with future government audit and reporting requirements. The Terms and Conditions include:
- Submit quarterly reports on total amounts received for COVID-19 and the use of funds.
- Agree that the funds will only be used to prevent, prepare for and respond to Coronavirus and that the funds shall reimburse the SNF only for health care-related expenses or lost revenues that are attributable to COVID-19.
- Not use funds for certain purposes prohibited by federal statutes.
What Expenses and Losses Are Considered Eligible for Reimbursement?
HHS provides that the term “health care-related expenses attributable to Coronavirus” may cover a range of items and services purchased to prevent, prepare for and respond to Coronavirus, including:
- Supplies used to provide health care services for possible or actual COVID-19 patients;
- Equipment used to provide health care services for possible or actual COVID-19 patients;
- Workforce training;
- Developing and staffing emergency operation centers;
- Reporting COVID-19 test results to federal, state or local governments;
- Building or constructing temporary structures to expand capacity for COVID-19 patient care or to provide health care services to non-COVID-19 patients in a separate area from where COVID-19 patients are being treated; and
- Acquiring additional resources, including facilities, equipment, supplies, health care practices, staffing and technology to expand or preserve care delivery.
HHS provides that the term “lost revenues that are attributable to Coronavirus” means any revenue that you as a health care provider lost due to Coronavirus. HHS also states that SNFs can use the payments to cover any cost that the lost revenue otherwise would have covered, so long as that cost prevents, prepares for, or responds to Coronavirus. Therefore, the costs do not need to be specific to providing care for possible or actual Coronavirus patients, but the lost revenue that the payment covers must have been lost due to Coronavirus. HHS encourages the use of funds to cover lost revenue so that providers can respond to the Coronavirus public health emergency by maintaining health care delivery capacity, such as using CARES Act Provider Relief Fund payments to cover:
- Employee or contractor payroll;
- Employee health insurance;
- Rent or mortgage payments;
- Equipment lease payments; or
- Electronic health record licensing fees.
Practical Takeaways
- Confirm your deposit and the calculations to reach the amount.
- Review the HHS Terms and Conditions and sign and submit the attestation.
- Review and create procedures for tracking and auditing the use of the funds and that funds were not used for prohibited purposes.
For more information on this topic, and for assistance in developing and implementing auditing and monitoring strategies specific to the use of your SNF COVID-19 CARES Act Provider Relief Fund, please contact:
- Sean Fahey at (317) 977-1472 or sfahey@wp.hallrender.com;
- Todd Selby at (317) 977-1440 or tselby@wp.hallrender.com;
- Brian Jent at (317) 977-1402 or bjent@wp.hallrender.com; or
- Your regular Hall Render attorney.
Hall Render’s attorneys and professionals continue to maintain the most up-to-date information and resources at our COVID-19 Resource page, through our 24/7 COVID‑19 Hotline at (317) 429-3900 or by contacting your regular Hall Render attorney.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot—outside of an attorney-client relationship—answer specific questions that would be legal advice.
