Coronavirus (COVID-19) Provider Relief Fund Reporting
Reach out to CBSI for assistance with navigating the accounting and reporting requirements of Provider Relief Funds. Our trained professionals have decades of experience in Healthcare Consulting.
Requirement:
Providers that received funds under the CARES Act are required to submit a report if they received one or more payments exceeding $10,000 in the aggregate.
Background:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136) and the Paycheck Protection Program (PPP) and Health Care Enhancement Act (Public Law 116-139) appropriated funds for health care providers for eligible healthcare related expenses or lost revenues attributable to COVID-19. The Department of Health and Human Services (HHS) released guidance on the reporting of COVID-19 expenses and lost revenues on September 19, 2020.
Issues:
The report is due on February 15, 2021, if all funds were expended in 2019; if not, reports are due on February 15, 2021 and July 31, 2021.
The COVID-19 expense covered under the CARES Act is different than the expense that is covered under PPP. Correct reporting of these expenses can have a major impact on refund of grants or loan forgiveness.
The lost revenue calculation has confusing guidance that takes into consideration many factors: 2019 net income, 2020 net income, and changes in revenue between 2019 and 2020.
The language of the HHS guidance indicates that the requested COVID-19 expense and lost revenue must be reduced by other sources of revenue, including payments received from insurance and patients, and amounts received from federal, state, or local governments.
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