Next Round of Provider Relief Funds Begin April 24

Regulation | April 22, 2020 | by Nicole Fallon

HHS announced Wednesday, April 22 that it will begin distributing the next round of CARES Act Provider Relief Funds and providers will begin seeing the new payments as early as Friday, April 24.


This second tranche of funding will begin rolling into provider bank accounts starting April 24 and be distributed in the following allocations:

  • $20 billion being distributed in payments to providers for whom Medicare Fee For Service (FFS) reflects a small share of their revenue and based off of 2018 net patient revenue as report on cost reports.
  • $10 billion to targeted hospitals in areas particularly impacted by the COVID-19 outbreak (requires application)
  • $10 billion for rural health clinics and hospitals (distributions to begin week of April 27)
  • $400 million for the Indian Health Service facilities based upon operating expenses. (distributions to begin week of April 27)
  • An unspecified amount will also be given to skilled nursing facilities, dentists, and providers that exclusively serve Medicaid recipients.
  • An unspecified portion (as announced in early April) will be used to reimburse health care providers, at Medicare rates, for COVID-19 treatment of uninsured individuals, until funds are exhausted.

Providers who derive a “small share” of their revenue from Medicare FFS are eligible for a portion of the $20 billion distribution. The portion they receive will be based on 2018 net patient revenue information in the CMS cost reports. Using this data, some providers will automatically receive payments. However, others with inadequate cost report data will need to submit additional information through an HHS portal which will open later this week. Providers should watch for this portal on the HHS CARES Act Provider Relief website. Payments for providers submitting additional information through the provider portal will be distributed weekly on a rolling basis after the information provided is validated. Providers who receive the automatic payment distributions, however, will also need to submit their revenue information for verification. Automatic distributions are scheduled to go out on April 24. 

It is unclear when dollars will begin flowing to providers who exclusively serve Medicaid recipients. It is also unclear how much of the remaining roughly $29.5 billion will be distributed to this group, as some portion of those funds will also be used to reimburse providers for caring for the uninsured seeking COVID-19 treatment.

Like the first tranche of funds, providers receiving a distribution of funds will be required to go online to submit an attest that they received the funds, agree to the terms and conditions, and confirm the CMS cost report information.

LeadingAge has updated its CARES Act Provider Relief Fund Background, Considerations & Frequently Asked Questions to reflect these new developments.