May 22, 2020
Physicians who believe they are eligible to receive payments from the second $20 billion distribution from the U.S. Department of Health and Human Services (HHS) Provider Relief Fund must apply for the funding before June 3, 2020.
The first $30 billion distribution was sent via direct deposit beginning April 10, 2020, to physicians, hospitals and other health care providers based on past Medicare fee-for-service (FFS) payments. On April 24, 2020, HHS announced a second tranche of $20 billion in funding for a total distribution of $50 billion. This $50 billion is now collectively being referred to by HHS as “the general distribution.”
ONLY physicians who received payments from the first $30 billion distribution are eligible for the second distribution. Physicians must apply for their share of this second $20 billion distribution through the application portal by June 3, 2020. You will be required to submit your most recent tax return and estimated revenue losses from March and April 2020.
Eligible physicians should expect to receive the LESSER of 2% of their 2018 net patient revenue OR the sum of incurred revenue losses for March and April 2020. If the first general distribution payment providers received was at least 2% of their annual patient revenue, those providers will not receive a second allocation. This means that the total funding a provider receives from the first distribution and the second distribution COULD be less than 2% of their total 2018 net patient revenues IF the sum of your incurred revenue losses for March and April 2020 is less than 2% of your 2018 revenue. This is a new and different funding allocation formula. For more details about the allocation formula, see the California Medical Association (CMA) COVID-19 Financial Toolkit for Medical Practices.
Attestation Deadline Approaching
Physicians who received funding from the first $30 billion general distribution are also reminded that they must confirm receipt of those funds and agree to the terms and conditions no later than 45 days from the date you received your payment. For example, the deadline for physicians who received payment on April 10, 2020 is extended to May 24 from May 9, 2020. Click here for more information.