Updated PRF Definition of Lost Revenue for Reporting Purposes
October 22, 2020
Today (Oct. 22), the U.S. Department of Health and Human Services (HHS) released amended guidance for reporting on the use of Provider Relief Fund (PRF) payments. In the amended guidance, HHS defines lost revenues attributable to coronavirus as a negative change in year-over-year actual revenue from patient care related sources (emphasis added). This is an expanded definition of lost revenues compared to the Sept. 19 PRF reporting guidance which defined lost revenues as a negative change in year-over-year net operating income from patient care related sources. An HHS policy memorandum regarding this change is here.
Providers are still required to use PRF payments to pay for unreimbursed healthcare related expenses attributable to coronavirus first. Providers may then use remaining PRF payments to cover any lost revenues.
HHS also expanded the pool of eligible PRF Phase 3 applicants. Hospitals that did not receive 2% of their net patient care revenue from previous distributions should apply to true-up their PRF general distribution payment total. Providers may also submit an application for an add-on payment that considers changes in operating revenues and expenses from patient care. More information on applying for Phase 3 funds is here, and applications are due by Nov. 6. Note that with more providers eligible to apply, the pool of money remaining for add-on payments may be limited.
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