Attention Provider Relief Fund Recipients: Prepare Now for Upcoming Reporting Requirements

The United States Department of Health & Human Services (HHS) recently issued a “Post-Payment Notice of Reporting Requirements” (“Notice”)  for providers that received distributions from the Coronavirus Aid, Relief and Economic Security Act (CARES Act) Provider Relief Fund (“Relief Fund”). The Notice says providers that received one or more payments of $10,000 or more (“Impacted Providers”) will need to submit reports demonstrating their compliance with the Relief Fund’s Terms & Conditions.

Timing of Reports

Per the Notice, Impacted Providers will be required to submit their reports through an online system that will become available October 1, 2020 . If Impacted Providers have expended all PRF funds before the end of the 2020 Calendar Year (December 31, 2020), reports will be due by February 15, 2021. Impacted Providers that have not expended all of their PRF funds by December 31, 2020 will need to submit a second, and final report  by July 31, 2021. Thus, all PRF funds  must be expended by July 31, 2021. The Health Resources and Services Administration (HRSA)  will provide detailed reporting instructions and a data collection template on its website.

Compliance with Terms & Conditions

HHS will use the reports to assess Impacted Provider’s compliance with either the General or Targeted Distribution’s Terms & Conditions. As a reminder, by merely accepting Relief fund awards,  providers  have agreed to abide by the Terms and Conditions of their distribution. The Terms & Conditions govern not just how  funds may be used, but include requirements that Impacted Providers manage these funds  like a Federal grant. Providers should familiarize themselves with the Terms and Conditions  as HHS has stated the Relief Fund payments will be subject to “significant anti-fraud and auditing work” by the United States Office of Inspector General (OIG), the investigatory arm of HHS.

Understand Your Terms & Conditions

While the General and Targeted Distributions  have their own  Terms & Conditions, both require providers to comply with  Federal regulations that require providers to abide by specific record retention standards and implement  financial management systems to ensure proper use of funds.

Other Terms & Conditions applicable to all providers  include:

•  funds cannot be used to reimburse expenses or losses already reimbursed from other sources; and,
•  funds may only be used to prevent, prepare for, and respond to coronavirus, and that payment only reimburse for health care related expenses or lost revenues that are “attributable to coronavirus”.

Other Notes

HHS will  post the names and payment amounts of Relief Fund recipients on a public website. HHS may also require additional reports to verify compliance with the Relief Fund’s Terms and Conditions.

Next Steps

Impacted Providers should note the deadlines for submitting reports on their expenditures. And while these deadlines only apply to impacted providers, all Relief Fund recipients should ensure they are in compliance with the Terms & Conditions in the event they are audited.

Providers must also complete all required attestations confirming receipt of Relief Funds within 90 days of receiving payment. There are separate attestation pages for Medicaid, Medicaid Managed Care, CHIP, and private pay assisted living distribution recipients, and for  targeted relief fund distributions.

Contact us

If you would like to discuss reporting requirements or your organization’s compliance with the Relief Fund’s Terms and Conditions, please contact one of the healthcare members of the COVID-19 Strategy Team at Hinman Straub.

COVID-19 Strategy Team

The COVID-19 Strategy Team at Hinman Straub advises clients on all aspects of legal and legislative representation related to the COVID-19 pandemic and NY Forward Reopening Plan in New York. Our attorneys and government relations professionals are providing advice and counsel on a wide range of areas, including insurance, healthcare, employment law, education, tax, litigation, and legislation. Our clients receive comprehensive updates and guidance on Federal and New York State specific legal and legislative developments.

This Alert is the express copyright of Hinman Straub P.C. and may not be republished without permission.  The statements contained herein are for informational purposes only and do not constitute legal advice.