You MUST file your HHS Provider Relief Funds report by the February 15 deadline or you’ll have to pay back your much-needed money. Report an unallowed expense or the wrong amount and you won’t be able to keep your funds.
HHS keeps issuing updated guidance on the CARES Act Provider Relief Funding including reporting requirements, a policy update, and FAQS about auditing and reporting. Your practice is depending on you to understand the guidelines, evaluate your expenses, calculate your lost revenue, and dig up supporting documentation.
Here are some crucial answers to frequently asked questions that will help you avoid paying back funds and incurring fines!HHS reporting deadline.
What Expenses Are You Allowed?
You may use the provider relief funds (PRF) for lost revenue or for general and administrative expenses and healthcare related expenses, over and above what were reimbursed from other sources, providing they are directly related to coronavirus. For instance, if you already used insurance claim money for mortgage, you can’t report mortgage expenses on your PRF report.
You may use the PRF for the following items:
General and administrative expenses:
- Mortgage, rent, lease payments, property taxes, property insurance premiums
- Employee health insurance, malpractice insurance, salaries, and fringe benefits
- Lighting, cooling and ventilation, cleaning, 3rd party vendor services, food preparation and supplies
- Consulting support, legal fees, audit and accounting services, logistics and transport, and debt financing
Healthcare related expenses:
- Supplies for patient screening, PPE, hand sanitizer
- Equipment such as ventilators and updates to HVAC systems
- IT expenses, such as electronic health record licensing fees, telehealth infrastructure, increased bandwidth, and teleworking
- Facilities expenses such as lease or purchase of permanent or temporary structures or to modify facilities for coronavirus patient treatment
When in doubt: Determine if the money was directly used to prevent, prepare for, or respond to the coronavirus.
Do You Need to Report Other Received Assistance?
Yes, you must report the total amount of other coronavirus-related assistance you receive as of the reporting end date. This includes any funds from:
- The Small Business Administration (SBA) and the CARES Act/Paycheck Protection Program (PPP), FEMA
- HHS for coronavirus testing
- Local, State, and Tribal Government Assistance
- Business Insurance
- Any other federal or coronavirus related assistance
Can You Expense Capital Equipment Purchases and Capital Facilities Projects?
Yes, you can declare expense capital equipment and capital facilities projects provider that your purchase or facilities project was directly related to prevent, prepare for and respond to the coronavirus.
Examples of qualifying equipment and inventory expenses include:
- Ventilators, computerized tomography scanners, and other intensive care unit- (ICU) related equipment put into immediate use or held in inventory
- Masks, face shields, gloves, gowns, biohazard suits, and general personal protective equipment
- Disinfectant supplies
Examples of qualifying facilities projects include:
- Upgrading a heating, ventilation, and air conditioning (HVAC) system to support negative pressure units
- Retrofitting a COVID-19 unit
- Enhancing or reconfiguring ICU capabilities
- Leasing or purchasing a temporary structure to screen and/or treat patients
- Leasing a permanent facility to increase hospital or nursing home capacity
Should You Report Your Staff Size and Patient Volume?
Yes! HHS isn’t just looking for financial information. You will need to report metrics for your personnel, patient, and facility as well. Specifically, you will need to collect quarterly information for:
- Personnel metrics: Total personnel by labor category (full-time, part-time, contract, other: recipient must define), total re-hires, total new hires, and total personnel separations by labor category
- Patient metrics: Total number of patient visits (in-person or telehealth), total number of patients admitted, and total number of resident patients
- Facility metrics: Total available staffed beds for medical/surgical, critical care, and other beds
Get Help with HHS Reporting
There are a lot of accounting complexities. Can you use HHS funds after depleting your PPP funds? What requires have changed from the initial program terms? Are owner salaries allowed costs? And so much more.
Fortunately, more expense help is available! HHS reporting deadline.
That’s where healthcare accounting experts Frank J. Miceli, CPA, MBA, FHFMA, and Mary Antonetti, CPA, MST, with Marcum LLP, can help.
During their upcoming training session “Account for All HHS Funds or Lose Your Money [Feb. 15 Deadline],” they will provide you with step-by-step guidance on how you can calculate lost revenues and determine what types of expenses you can claim so that you can hold onto all of your received funds.
