Posted In: Health Care
By Nicole M. Thorn on August 4, 2020
On July 20, 2020, the Department of Health and Human Services (HHS) posted an announcement about the forthcoming reporting requirements for providers who received CARES Act funding through a General or Targeted Distribution. These two types of funding were made available by HHS to assist providers with losses resulting from the coronavirus. As a refresher, General Distribution payments were made to providers based on their prior years’ Medicare payments. One round of payments was made automatically; the other required formal application. Targeted Distribution payments were made to areas deemed “High Impact” for treating coronavirus, rural areas, skilled nursing facilities, Indian Health Service areas, and safety net hospitals.
Providers who received either type of funding were required to accept such payments by agreeing to certain Terms and Conditions which, among other terms, obligated each recipient to submit reports to HHS in a form specified by the Secretary of HHS at a later date. Pursuant to this indication, that later date is now here. On August 17, 2020, HHS will release detailed reporting instructions, including a data collection template with necessary data elements, and plans to host a Question and Answer session via webinar prior to the submission deadline.
Providers who received more than $10,000 in the aggregate from any Provider Relief Funds, including from the General Distribution or the Targeted Distribution, must submit reports by February 15, 2021, 45 days after the end of the 2020 calendar year. The report must reflect an accounting for the entire amount of the CARES Act funding expenses through December 31, 2020. Providers that have already expended this amount may begin submitting their reports earlier, as the reporting system will open on October 1, 2020. Providers that have not yet expended these funds by December 31, 2020 must still meet the February 15, 2021 deadline for their 2020 expenses; however, they must also submit a second and final report with the remaining 2021 expenses no later than July 31, 2021.
If you’re like most providers, you have been focused on re-opening your health care operation and keeping up with the current requirements. However, if you have not already reviewed your use of the CARES Act funding you received, you may want to begin doing so. The original Terms and Conditions pointed to a general requirement under 45 C.F.R. 75.302 to maintain appropriate financial records such that any recipient of federal monies can justify the designated use. However, the Terms and Conditions also provide more specifically that the reports must contain:
- the total amount of funds received from HHS under the foregoing enumerated Acts; and
- the amount of funds received that were expended or obligated for each project or activity; and
- a detailed list of all projects or activities for which the funds were expended or obligated, including:
- the name and description of the project or activity, and
- the estimated number of jobs created or retained by the project or activity, where applicable; and
- detailed information on any level of subcontracts or subgrants awarded by the Recipient or its subcontractors or subgrantees, to include the data elements required to comply with the Federal Funding Accountability and Transparency Act of 2006 allowing aggregate.
The healthcare practice group at Brouse McDowell has partnered with many health care operators since the pandemic began on many issues impacted their industry such as CARES Act funding eligibility and rules, CDC and state orders and more. Please contact us if we can assist you with this or other legal or compliance issues.
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