A new HHS Funding Phase 3 opened on Monday October 5th. What follows are key items to know about this new round of funding along with HHS funding you may have already received.
- You may apply for this new round of funding even if you already received additional funding.
a. If you did not receive the full 2% of patient care of revenue, then you can request more now.
b. An additional amount may be added, to what you have already received, if you are able to demonstrate a significant loss of revenue or increase in expenses as a result of Covid-19.
- You will need to provide operating revenues and expenses, separately, on this current application for quarter one (Jan 1 – March 31st) and quarter two (April 1 – June 30th) of 2020 compared to where it was during quarter one and quarter two of 2019.
- You may also apply for this new round of funding if you are a new dental business that opened in the first quarter of 2020.
- HHS Provider Relief Funding is a grant, and you will be required to report to the government regarding how this money was used. The government’s intent is for a business to not make a profit from this grant. You will be required to prove that this money was used for the following:
a. Eligible expenses attributable to Covid-19, which includes supplies and equipment used to prevent, prepare for, or respond to Covid-19. Here are some examples:
- Hand sanitizer
- Supplies for patient screening
- Purchase of equipment used to prevent, prepare for, or respond to Covid-19 (e.g., purchasing ventilators for the practice)
- Updates to HVAC systems
b. You may also use this money to cover lost revenue in 2020 compared to 2019. This operating loss cannot be covered by any other grants or PPP funding. This is a little more complicated to try and prove so our recommendation is to focus on using the funds for eligible expenses listed above, not lost revenue.
- If you cannot use the funds for qualified expenses by 12/31/2020, it appears the government will grant a six-month extension and you will be able to use these funds for the first six months of 2021. We recommend you save invoices on all Covid-19-related expenses; this includes the period before you received the HHS Grant. This will help you determine if you have used all the funds by the end of the year.
- You will be required to report to the government and prove the use of the HHS funds were for qualified expenses. We are still waiting on formal reporting guidelines, but it appears the first reporting system will open 1/15/2021 with the first reporting deadline of 2/15/21. Final reporting will be due 7/31/2021 for providers who did not fully expend funds prior to 12/31/2020 and needed the additional six months.
- Should you apply for Phase 3 funding? If you did not previously apply, you may want to apply to cover your additional costs. Practices that have already received PPP and HHS funding and are on track for 2020 profit to be equal or even better than 2019, should consider whether the additional funds are necessary.
- If you feel you qualify for this additional funding, you should apply as soon as possible. Application deadline is November 6th. It appears there will be a “first come, first served” aspect to who receives the funding. Click here for full details:
- If you would like more information, HHS will be hosting a webcast on 10/15/2020, at 12:00 pm, PST, for potential applicants to review the application process and have questions. Click here to register
We will continue to monitor the HHS Relief Fund, as well as other opportunities, and share the latest news with you.