Applications for Phase 4 of the Provider Relief Fund (PRF) General Distribution are due by October 26. This new round of funding will be similar to Phase 3, which covered up to 88% of reported losses and net changes in operating expenses from patient care in the first half of 2020. Phase 4 will focus on lost revenues and changes in operating expenses from July 1, 2020, to March 31, 2021.
Phase 4 will also include new elements specifically focused on equity, including reimbursing smaller providers for their lost revenues and COVID-19 related expenses at a higher rate compared to larger providers and bonus payments based on the number of services furnished to patients in Medicare, Medicaid and the Children’s Health Insurance Program (CHIP). The Health Resources and Services Administration (HRSA) will determine “smaller” providers and “bonus” payments based on the applications received.
An additional $8.5 billion Rural Distribution, intended for providers who furnish services to Medicare, Medicaid and CHIP patients in defined rural areas, is also available for consideration via the same application. In determining rural areas, HRSA has clarified that payments will be based on the patient’s location, not the location of the provider.
To be considered for this portion of Phase 4, providers will only need to check a box in Field 21 of the application. HRSA will evaluate provider claim data to determine eligible patients. If applying for Phase 4, it seems there is no reason not to request consideration for the Rural Distribution.
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