$20 Billion of New “Phase 3” Provider Relief Funding is Now Available

Oct 7, 2020

$20 Billion of New “Phase 3” Provider Relief Funding is Now Available

On October 1st, the Dept. of HHS announced another $20 billion of provider relief funding to help doctors manage the COVID-19 pandemic.  This is new funding that is available to all doctors (including dentists) whether or not they have already applied for and received provider relief funding in an earlier round.  Recall that the PPR program pays health care providers 2% of their annual practice revenue.  Even if you already received this, you can apply for additional Phase 3 funding.

 

This will require a new application (even if you’ve already applied for a PRF distribution before), and it must be submitted between October 5th and November 6thApplication details can be found here under the heading “How to Apply for Phase 3 General Distribution.”  You will once again have to submit your most recent practice tax return, the revenue worksheet, and operating revenues and expenses from patient care.

 

According to the HHS, once all applications have been received, HHS will dole out the $20 billion first to applicants who didn’t receive a full 2% of prior PRF funding.  They will get their full initial 2% payment.  The remainder of the $20 billion, if any, will be distributed based on HHS’s determination of which health care providers have been most hurt by COVID-19 in terms of the providers’ loss of income and/or increase in operating expenses.

 

Is it worth applying if “only” $20 billion is now available?  Probably so.  The CARES Act authorized $175 billion of initial Phase 1 funding for health care providers, and it has taken six months of heavy promotion for this to be fully subscribed.  This new round is getting less publicity and is open for a limited period.  Plus, there may be some government program fatigue setting in which could limit new applications.  In any case, applicants for Phase 3 funding may be pleasantly surprised by the results.

October 27, 2020 Update

HHS will also be hosting a Nov. 2 webcast to help dentists with questions. The webinar is free and will take place at 2 p.m. Central. Preregistration is recommended to participate, and providers can also recommend questions they’d like to see answered during the event.

Under the new Phase 3 general distribution, any provider who previously applied, accepted or rejected payments from the fund can apply again for additional payment. HHS also said that providers who just began practicing Jan. 1, 2020, through March 31, 2020, are newly eligible and will be able to submit applications. Additionally, Phase 3 is also an opportunity for any provider to correct any previous miscalculated payments. If a dentist never applied to begin with, they can also try to validate their taxpayer identification number (TIN) in order to apply.

The department has posted a step-by-step guide on how to apply on its website.

Dentists with questions should contact the HHS Provider Support Line at 1-866-569-3522 during the hours of operation from 7 a.m. to 10 p.m. CT Monday-Friday.

Collier & Associates, Inc. will update our blog as the CARES Act progresses. We take pride in continuing to keep our subscribers and website visitors updated on current events during this extraordinary time.

We will work diligently to answer general inquiries via our website if time permits and in a little more detail within our Newsletters. However, if your questions are detailed in nature, please request to set up a conference call for a formal legal consultation. Thank you.

DISCLOSURE

Collier & Associates, Inc. provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice or to create a lawyer-client relationship. Readers should not act on this information without seeking advice from professional advisors.

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