Background on Covid-19 relief legislation and programs
In response to the financial pressure that Covid-19 placed on the U.S. economy—including health care providers—Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the largest emergency stimulus package in history. The CARES Act authorized over $2 trillion in stimulus, with $100 billion earmarked for the Provider Relief Fund. In follow up to the CARES Act, the Paycheck Protection Program and Health Care Enhancement (PPP-HCE) Act provided an additional $75 billion in funding to the Provider Relief Fund. HHS has been distributing these funds through a series of targeted and general distributions since early April.
Last week's announcement of the Phase 3 distribution follows the $68 billion that had already been allocated in Phase 1 and Phase 2 General Distributions. A wide range of providers are eligible to apply for the newly allocated funds, including those who already received a General Distribution payment or were ineligible to apply for support previously because they started practicing in the first quarter of 2020. The application period is open from Oct. 5, 2020 through Nov. 6, 2020.
Additionally, HHS has allocated nearly $56 billion in targeted distributions to health care providers in areas particularly hard-hit by the Covid-19 pandemic, leaving approximately $31 billion of the Provider Relief Fund unallocated to date.
However, the $175 billion Provider Relief Fund is one of the many sources of financial relief available. The CARES and PPE-HCE Acts also appropriated funds to health care providers through various programs outside of the Provider Relief Fund.
How Advisory Board can help
We've reviewed the 27 highest profile federal support programs to save you time. We summarized the key details in our new interactive tool, The CFO's guide to navigating federal funding sources of Covid-19 relief. Check it out to learn earn about the major grants, loans, and reimbursement changes available right now through the CARES and PPP-HCE Acts—and potential legislation that could provide the next round of relief.
Learn more: Revenue cycle action items to mitigate the Covid-19 cash crunch
Download our research note to learn more about maintaining the financial health of your institution by bolstering your revenue cycle operations. Keep an eye out for future research on Phase II and Phase III considerations to optimize revenue cycle operations throughout and beyond Covid-19.