HHS Announces New Round of Provider Relief Funds

On Monday, October 5, healthcare providers who are serving on the frontlines of the COVID-19 pandemic can begin to apply for relief funds from a new Phase 3 General Distribution allocation.

The U.S. Department of Health and Human Services (HHS) announced another $20 billion yesterday to help providers recover from continued financial losses and increased expenses caused by the pandemic.

Determining Eligibility

All providers who previously received and accepted or rejected a general distribution Provider Relief Fund (“PRF”) payment are eligible to apply. Providers that have not yet received PRF payments of 2 percent of patient revenue will receive a payment that, when combined with prior payments (if any), equals 2 percent of patient care revenue.

Some providers who were previously ineligible for the PRF payments can also apply to this phase. These providers include:

  • Providers who began practicing between January 1, 2020 and March 31, 2020
  • An expanded number of behavioral health providers, who were previously ineligible, serving the increased mental health and substance abuse issues exacerbated by the pandemic

Applying for Additional Funds

To achieve an equitable distribution, HHS will first provide relief funds to those providers who had not previously received their 2 percent payment.  Once those payments are made, HHS will then calculate an equitable add-on payment considering:

  • A provider’s change in operating revenues from patient care
  • A provider’s change in operating expenses from patient care, including expenses incurred related to coronavirus

Time is of the Essence

The Phase 3 portal will accept applications through November 6, 2020, but HHS encourages early application to expedite the review process, payment calculation and distribution of the funds.


David M. Rottkamp David M. Rottkamp, CPA, is an Audit Partner, Nonprofit Practice Leader, at Grassi. David has over 34 years of experience providing audit and advisory services to the nonprofit and health care industries.  David focuses on organizations serving individuals with special needs, religious organizations, educational institutions, membership associations, social service providers, healthcare providers, foundations, and the arts and culture world. David’s technical knowledge allows him... Read full bio

Joseph Tomaino Joseph Tomaino is the Chief Executive Officer of Grassi Healthcare Advisors, LLC and has nearly 40 years of healthcare management experience working in the nonprofit, for-profit and government-sponsored segments. As a chief executive officer, chief nursing officer, consultant, and educator, Joseph has worked with provider organizations and payers across the U.S. as an architect of value based care -- improving clinical effectiveness along with... Read full bio

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