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Tag: CARES Act

COVID-19 Funding Update| Toyon’s Covid-19 Funding Resource

 

·  Revised PRF instructions have four different reporting periods.

·  The first reporting deadline is September 30, 2021.

·  The last reporting deadline is March 31, 2023 for funds received July 1, 2021 through December 31, 2021.

 

Toyon is pleased to provide this update on the CARES Act Public Health and Social Services Emergency Fund (PHSSEF).   For more information, or to contact any of our team members, please feel free to visit Toyon’s website or contact Fred Fisher at fred.fisher@toyonassociates.com.

HHS Releases Revised PHSSEF Instructions
On June 11, HHS published revised PHSSEF reporting instructions and FAQs. The Provider Relief Funding Portal will be open July 1, 2021 for the first of four reporting periods.  The reporting periods are in below table. 

Initial Takeaways
Toyon is currently evaluating HHS’ new instructions and FAQs and will be providing comprehensive industry updates, as well as updates to our PHSSEF hospital workbook.  In the meantime, listed below are initial takeaways from HHS’ new reporting instructions:

  • Period four indicates HHS plans on distributing remaining PHSSEF as early as July 1, 2021 through December 31, 2021.
  • Providers now also report “Net Unreimbursed Expenses Attributable to Coronavirus”. It is possible, yet still undetermined, period one information may be used to determine need for future hospital funding. 
  • Per the FAQs, HHS still permits “reimbursement of marginal increased expenses related to coronavirus provided those expenses have not been reimbursed from other sources or that other sources are not obligated to reimburse”. However, HHS has removed the example language using an $85 office visit during the pandemic (the “$85 FAQ”). 
  • COVID-19 expenses, lost revenue and funding is now reported by quarter based on the period of availability (per table above).
  • Through PHSSEF reporting, HHS is now collecting a survey on the impact of PHSSEF payments for each reporting period.
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Provider Call to Action

Action Requested – Medicare Accelerated and Advance Payments

Teaming with national healthcare leaders, Toyon seeks to work with HHS and CMS to amend policy surrounding Medicare Accelerated and Advance Payment (AAP) recoupments. 

The Medicare program graciously loaned $83bn through Accelerated and Advance Payments (AAP) to hospitals across the country to help with cash-flow during the public health emergency (PHE).  Toyon first supports a delay and forgiveness of these loans. In the event hospitals do not receive relief on these loans, Toyon looks to work with CMS, HHS and other federal agencies toward:

Call to Action
Toyon respectfully requests your brief information below as a call to action requesting CMS, HHS and other federal agencies to address these important issues through policy amendment, development, etc.  To demonstrate a critical mass of support, Toyon will be providing CMS and HHS officials a list of signatures, once collected.  

Please contact Fred Fisher at 888.514.9312, fred.fisher@toyonassociates.com with any questions.  Thank you.     

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COVID-19 Funding Update

Toyon is pleased to provide this update on COVID-19 funding for rural providers.

 
● $8.5 billion in funding for rural providers
 
● Providers in rural areas, providers in MSAs less than 500K, and rural referral centers.  
 
● Recognition of COVID-19 expenses – direct, indirect, and stranded – is critical.
 
$8.5 billion in Provider Relief for Rural Providers
 
On March 11, 2021, H.R.1319 – American Rescue Plan Act of 2021 was signed into law appropriating $8.5bn of COVID-19 funding for rural providers recognizing healthcare expenses and lost revenues attributed to COVID-19. Rural providers eligible for this funding include:
 
This legislation specifies as part of eligibility, a provider will submit an application including, “A statement justifying the need of the provider for the payment, including documentation of the health care related expenses attributable to COVID-19 and lost revenues attributable to COVID-19.”
 
Toyon’s Take
HHS has yet to prescribe how hospitals and providers apply for this additional COVID-19 funding for rural providers. However, documenting healthcare related expenses and lost revenue is the same information providers will be submitting to justify current CARES funding allocations (the reporting was delayed from February 15, 2021). It is possible, yet still undetermined, information reported to the Provider Relief Fund Reporting Portal could be the same information used to determine hospital funding need. 
 
Recognizing all costs – direct, indirect and stranded – is critical not only to justify funding, but also to prove eligibility for additional funding. The legislation notes this funding “includes” expenses as follows:
 
“…health care related expenses to prevent, prepare for, and respond to COVID-19, including the building or construction of a temporary structure, the leasing of a property, the purchase of medical supplies and equipment, including personal protective equipment and testing supplies, providing for increased workforce and training (including maintaining staff, obtaining additional staff, or both), the operation of an emergency operation center, retrofitting a facility, providing for surge capacity, and other expenses determined appropriate by the Secretary.”
 
Toyon continues to advocate HHS recognize not only the direct expenses, much of which are delineated in the legislation – but also the indirect and stranded expense resulting from COVID-19. These expenses are currently discussed in HHS’s “$85 FAQ” and may include, but are not limited to:
 
✓ The inability to flex down during preparations for COVID-19 surges
✓ Rapid employee burnout and turnover
✓ Current labor costs and an unknown future
✓ Excess laboratory cost from pandemic
✓ Wear and tear on assets – shortening the useful life of an asset
 
We are Here to Help
Please contact Fred Fisher at 888.514.9312, fred.fisher@toyonassociates.com. Feel free to also visit Toyon’s COVID-19 Funding Resources
 
Respectfully,
Toyon Associates
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