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1 1 (June 26, 2020)

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           I Congressional
               Research Service





The COVID-19 Health Care Provider

Relief Fund



June  26, 2020

In response to the 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, defined in the law as public entities, Medicare
or Medicaid enrolled suppliers and providers, and such for-profit entities and not-for-profit entities not
otherwise described in this proviso as the Secretary may specify, within the United States (including
territories), that provide diagnoses, testing, or care for individuals with possible or actual cases of
COVID-19.  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 Accelerated andAdvanced
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 PRF. 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 and PPP, so
long as the funds are not duplicative.

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 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 UnitedHealth Group.



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