What Medical Practices Should Know About Round 2 of the CARES Act Provider Relief Fund — Health and Human Services COVID-19 Stimulus Program– May 01, 2020 by Kathy Walsh

As part of the CARES Act, on April 10, 2020, the first round ($30 billion) of the Department of Health & Human Services (HHS) Stimulus general distribution funds were deposited based on a practice’s 2019 Medicare payments. This was not a loan, and there is an attestation that needs to be completed with respect to these funds.

>> Read the terms and conditions of round one.

The next round of general distributions ($20 billion) will allow HHS to make additional distributions only to Medicare providers who received an initial direct deposit or check by April 24. To receive round two, these medical practices will need to submit information through the general distribution portal, including data regarding:

  • Your annual revenue,
  • Estimated COVID-related losses,
  • Most recently filed tax return, and
  • All provider TINs included on that tax return. 

If you have NOT received any payment from the first round of general distribution funds, you are NOT eligible to use the Provider Relief Fund Application Portal; however, you may still be eligible for payments from the Provider Relief Fund through other mechanisms, including targeted distributions being made from the fund. Read the related FAQs.

While everyone receiving round two distributions must sign the attestation within 30 days of receiving the funds, there is an additional accounting requirement if you received over $150,000. This report is due 10 days after each calendar quarter, so July 15 for the first report. Read more detail on the acceptance of terms and conditions.

>> Read the terms and conditions of round two.

Finally, as alluded to above, there is still a targeted distribution to be made for those involved in the treatment of the uninsured, COVID-19 high impact areas, rural providers, Indian Health Services and some providers who will receive further, separate funding, including skilled nursing facilities, dentists and providers that solely take Medicaid. This portion of the program has not yet been implemented.

Learn more about the HHS program on their website.

Contact Kathy Walsh at kwalsh@cohencpa.com or a member of your service team to discuss this topic further.

Like what you read? Sign up to receive our latest tax, accounting and business blogs and podcasts.

Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.