To offset lost revenues, COVID expenses, and reduced cash flows during the pandemic, healthcare providers have been able to tap into Provider Relief Funds (PRF) and Medicare Advanced Payments (MAP) afforded under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The Department of Health and Human Services (HHS) published initial information that indicated recipients could estimate lost revenue by any reasonable method, but later published reporting requirements contrary to its original response. Since then, HHS has again issued revised instructions indicating that providers can use funds in 2020 to cover the difference between their 2019 and 2020 actual patient care revenue with some adjustments for COVID-related expenses.
PYA Managing Principal of Audit & Assurance Services Mike Shamblin moderated a roundtable discussion during a webinar presented by HLB – The Global Advisory and Accounting Network. PYA Principal Matt Stuart and other thought leaders discussed the fluctuating guidance related to funds’ use and reporting. The panelists offered opinions and insights and discussed the impact on revenue recognition as well as accounting for PRF and MAP.
The webinar took place Tuesday, December 8, 2020.
If you would like more information about HHS guidance for Provider Relief Funds or any guidance related to COVID-19, visit PYA’s COVID-19 Hub, or contact a PYA executive at (800) 270-9629.