On Friday, June 11, 2021, the Department of Health and Human Services (HHS) released its updated Post-Payment Notice of Reporting Requirements. The June 11 Notice establishes (1) the deadline by which a recipient must use its funds, and (2) the deadline by which a recipient must report on its use of funds. Both deadlines are tied to the date on which funds were received (i.e., the deposit date for automated clearinghouse payments or the check cashed date):
|
Period |
Payment Received Period |
Deadline to Use Funds |
Reporting Time Period |
|
Period 1 |
April 10, 2020 to June 30, 2020 |
June 30, 2021 |
July 1, 2021 to September 30, 2021 |
|
Period 2 |
July 1, 2020 to December 31, 2020 |
December 31, 2021 |
January 1, 2022 to March 31, 2022 |
|
Period 3 |
January 1, 2021 to June 30, 2021 |
June 30, 2022 |
July 1, 2022 to September 30, 2022 |
|
Period 4 |
July 1, 2021 to December 31, 2021 |
December 31, 2022 |
January 1, 2023 to March 31, 2023 |
A recipient is required to report for each Payment Received Period in which it received one or more payments exceeding, in the aggregate, $10,000 (as opposed to $10,000 cumulatively across all PRF payments).
Period 1 deadlines (June 30, 2021 for use and September 30, 2021 for reporting) include the Phase I and II General Distributions and the Targeted Distributions for rural providers, COVID-19 high-impact hospitals, skilled nursing facilities (SNFs), and safety net providers, and Indian Health Services facilities. The subsequent deadlines encompass the Phase III General Distributions and several smaller Targeted Distributions.
HHS warns that “PRF recipients that do not report within the respective reporting time period are out of compliance with payment Terms and Conditions and may be subject to recoupment.”
While HHS will permit a parent entity to include its subsidiaries’ General Distribution payments in its reporting, a parent entity may not include its subsidiaries’ Targeted Distribution payments. Instead, the original recipient of a Targeted Distribution must report on the use of funds under its own tax identification number (TIN), regardless of whether the original recipient subsequently transferred the payment.
The June 11 Notice does not state the date by which the reporting portal will be open, or instructions on the use of the portal will be released. Presumably, this will occur on or before July 1, 2021, as that is the date on which the initial reporting period commences.
According to the June 11 Notice, reporting entities will submit required data in the following order (with the exception SNF and Nursing Home Infection Control Distribution Payments, for which there will be separate requirements):
1. Interest Earned
Report on the dollar value of interest earned on any PRF payment held in an interest-bearing account. This amount will be included in the total reportable use of PRF payments.
2. Other Assistance Received
Report on other assistance received in each of the following categories by quarter during the period of availability (i.e., from the date the payment was received through the deadline for its use). If the reporting entity is reporting on behalf of subsidiaries, the assistance received for each category must be aggregated across each of the subsidiaries included in the report.
-
- Department of the Treasury and/or Small Business Administration Assistance (including Paycheck Protection Program)
- Federal Emergency Management Agency Programs.
- HHS CARES Act Testing
- Local, state, and tribal government assistance
- Paid claims against business interruption insurance policies
- Other federal and/or coronavirus-related assistance
3. Expenses
Report on the use of PRF payments for those health care-related expenses attributable to coronavirus not otherwise reimbursable from another source by quarter by specified categories.
4. Revenue
Report on patient care revenues for 2019 through the most recently completed calendar year, even if the reporting entity expended all PRF payments on expenses. Specifically, a reporting entity must submit revenues/net charges from patient care (prior to netting with expenses) by payer mix (including out-of-pocket charges) and by quarter.
To the extent PRF payments are not fully expended on expenses, report on the application of payments to lost revenues using one of three options and submit specified supporting information:
-
- The difference between actual patient care revenues
- The difference between budgeted (prior to March 27, 2020) and actual patient care revenues (submit budgets and attestations)
- Calculated by any reasonable method of estimating revenues (submit narrative explanation and calculations).
5. Other Information
Report other required information as applicable, including:
-
- Identifying information including TIN, business name, address, contact information, and provider type.
- For a reporting entity that is a subsidiary, (i) the TIN(s) of any parent entity reporting on behalf of the reporting entity, if applicable; and (ii) the total dollar amount of targeted distribution payment(s) transferred to/by a parent entity, if applicable.
- For a reporting entity that acquired or divested of related subsidiaries (change of ownership) during the period of availability, additional information regarding such transaction.
- Specified tax and single audit information.
- Specified personnel, patient, and facility metrics by quarter throughout the period of availability.
Finally, a reporting entity will be required to complete a survey regarding the impact of payments in the following categories:
-
- Overall operations
- Maintenance of solvency and prevention of bankruptcy
- Retention of staff and prevention of furlough
- Re-hire or re-activation of staff from furlough
- Facilitation of changes needed to operate during the pandemic
- Ability to care for and/or treat patients with COVID-19
- Impact on business or patient services (optional narrative statement)
HHS promises to hold webinars for reporting entities and other interested stakeholders, including question and answer sessions. Also, HHS promises to update and issue additional FAQs and provide a detailed PRF Reporting Portal User Guide. Again, no firm dates have been provided.
Unfortunately, it appears many of the appeals made by provider organizations to HHS to simplify the reporting process fell on deaf ears. PYA stands ready to assist your organization in interpreting and applying the reporting requirements and compiling and reviewing required data.
If you would like guidance related to the appropriate use of Provider Relief Funds, or for assistance with any matter related to COVID-19 relief, visit PYA’s COVID-19 hub, or contact one of our PYA executives below at (800) 270-9629.
