Yesterday, (October 22, 2020) the Department of Health and Human Services (HHS) changed the rules to now include the loss of gross revenue during the pandemic. As a result of this change, we are encouraging clients to file for the additional funding under Phase 3 of the Provider Relief Fund (PRF) if your gross revenue is down compared to the previous year. Previously, HHS was wanting practices to use net income (after expenses) to, eventually, report the need for this money in order to keep it and not have to pay it back. Although many practices have lower gross revenue in 2020 compared to 2019, because many expenses are also lower, not all practices have lower net income.
You can apply again even if you already applied. You can apply if you are a “startup” dental practice (January 1st through March 31st, 2020). You can apply if you did not receive the proper amount of funding under Phase2. Please keep in mind, these funds are currently taxable.
There will be reporting requirements in the future (July 2021) for you to substantiate the funding. If you cannot support the funding, the excess will have to be repaid back to HHS. What can you use the HHS Funding for, besides the loss of revenue? Here is a list of expenses.
- Supplies used to prevent, prepare for, or respond to the coronavirus during the reporting period. Such items could include personal protective equipment (PPE), hand sanitizer, or supplies for patient screening.
- Equipment used to prevent, prepare for, or respond to the coronavirus during the reporting period, such as ventilators, updates to HVAC systems, etc.
- Information Technology or interoperability systems used to expand or preserve care delivery during the reporting period, such as electronic health record licensing fees, telehealth infrastructure, increased bandwidth, and teleworking to support remote workforce.
- Facility-related costs used to prevent, prepare for, or respond to the coronavirus during the reporting period, such as lease or purchase of permanent or temporary structures, or to modify facilities to accommodate patient treatment practices revised due to coronavirus.
- Other Healthcare Related Expenses not previously captured above that were paid to prevent, prepare for, or respond to the coronavirus.
We are encouraging all clients to maintain a list of Covid-related expenses you incurred within your practice between the period of March 15, 2020 and June 30, 2021. Please consider using the attached Excel spreadsheet – Covid Expenses incurred 03.15.20 through 06.30.21 – to capture those expenses or create an expense category in QuickBooks to track the expenses.
For additional information on the HHS Phase 3, please click on the following links:
ADA News – October 22, 2020 – https://www.ada.org/en/publications/ada-news/2020-archive/october/hhs-provider-relief-fund-open-for-phase-3-applications?utm_source=DEC_DIQ+Morning+Briefing&utm_medium=email&utm_campaign=CPS201022074&o_eid=5213J4648590B4Z&rdx.ident%5Bpull%5D=omeda%7C5213J4648590B4Z
What is the Provider Relief Fund? – https://www.hhs.gov/coronavirus/cares-act-provider-relief-fund/for-providers/index.html?language=es#what-is-the
HHS Webcast – November 2, 2020 – click here to register – https://webex.webcasts.com/starthere.jsp?ei=1392456&tp_key=eddc1773dc
ADA – FAQ’s – HHS – https://success.ada.org/~/media/CPS/Files/COVID/HHS_Provider_Relief_Fund_FAQ.pdf
HHS Client Assistance – If you have questions, please contact the HHS Provider Support Line at 1-866-569-3522 during the hours of operation from 7 a.m. to 10 p.m. CT Monday-Friday.
If you need assistance, please reach out to us and we will help.
Please stay healthy, safe, and sane