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The COVID-19 Health Care Provider

Relief Fund



Updated September 18, 2020
In response to the Coronavirus Disease 2019 (COVID-19) pandemic, some health care providers limited
in-person visits and cancelled elective procedures to reduce the spread of COVID-19, prepare for
COVID- 19 patients, and conserve personal protective equipment. As a consequence, some providers
reported forgone revenue and/or significant financial challenges, making it difficult to sustain services. To
address these concerns, Congress established the Provider Relief Fund (PRF, or the Fund) in the
Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) and appropriated $100
billion to reimburse, through grants or other mechanisms, eligible health care providers for health care
related expenses or lost revenues that are attributable to coronavirus. The Paycheck Protection Program
and Health Care Enhancement Act (PPPHCEA, P.L. 116-139) added an additional $75 billion to the Fund.
The PRF provides grants to eligible health care providers. Funds do not have to be repaid as long as the
provider meets the Fund's terms and conditions. This differs from other provider support programs, such
as the Medicare Accelerated and Advance Payment Program (AAP), expanded in the CARES Act, which
provides advance Medicare payments. The AAP has since been suspended as providers are directed to
apply to the PR. Some providers may have received funds from both programs. Some providers (e.g.,
physician practices) may also be eligible for loans from the Paycheck Protection Program (PPP), and can
receive funds from both the PRF arid PPP, so long as the funds are not duplicative. In response to
questions by providers, the Center for Medicare & Medicaid Services (CMS) has clarified how PRF funds
are to be reported as revenue, in Medicare Cost Reports for reporting providers. In addition, the Internal
Revenue Service (IRS) has clarified that PRF funds are taxable.

Fund Administration
The PRF is administered by the Health Resources and Services Administration (HRSA) within the
Department of Health and Human Services (HHS). HRSA also administers a different but related fund
that provides reimbursement for COVID- 19 testing and treatment for the uninsured, with a portion of
PRF funds allocated for uninsured treatment. Both the PRF and the uninsured fund are administered
under contract with the UInitedHealth Group.




                                                               Congressional Research Service
                                                                 https://crsreports.congress.gov
                                                                                     IN11438

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