The U.S. Department of Health and Human Services (HHS) has issued new guidance extending the timeline for health care providers that received more than $10,000 in payments from the Provider Relief Fund (PRF) to expend and report the funds. While the terms and conditions attached to the PRF funds did not specify a deadline for using the funds, HHS had previously informed providers that all funds must be used by June 30, 2021, and that funds not used by this date would be subject to recoupment. The new guidance extends the timeline for use of PRF payments received after July 1, 2020. HHS has also updated its PRF FAQs.
The new deadlines for use and reporting of PRF funds are staggered based on when the funds were received. Funds are available to be expended for at least 12 months and a maximum of 18 months from the date of receipt. Recipients should review their financial records to determine the deposit date for the automated clearing house payment or the check cashed date, which will determine when the payments were received.
| PERIOD | PAYMENT RECEIVED | DEADLINE TO USE FUNDS | REPORTING TIME PERIOD |
| Period 1 | April 1, 2020 to June 30, 2020 |
June 30, 2021 | July 1, 2021 to September 30, 2021 |
| Period 2 | July 1, 2020 to December 31, 2020 |
December 31, 2021 | January 1, 2022 to September 30, 2022 |
| Period 3 | January 1, 2021 to June 30, 2021 |
June 30, 2022 | July 1, 2022 to September 30, 2022 |
| Period 4 | July 1, 2021 to December 31, 2021 |
December 31, 2022 | January 1, 2023 to September 30, 2023 |
The extended deadlines will be welcome news to many providers that received PRF funds, allowing them to continue funding ongoing operations to prepare for, prevent, and respond to coronavirus. A number of questions remain about the reporting and permissible use of the PRF funds, including whether the new reporting periods will modify prior instructions on calculating lost revenue. Additional information from HHS, including supporting worksheets to be completed by reporting providers, should be released in connection with the opening of the reporting portal on July 1, 2021, for the Period 1 payments.
Foley is here to help you address the short- and long-term impacts in the wake of regulatory changes. We have the resources to help you navigate these and other important legal considerations related to business operations and industry-specific issues. Please reach out to the authors, your Foley relationship partner, or to our Health Care Practice Group with any questions.
