Medicare Begins to Retain Payments to Recipients of COVID-19 Advances

Medical providers and healthcare organizations that received advanced Medicare payments in response to volume interruptions caused by the COVID-19 shutdown will begin to repay those amounts.

Repayment begins 121 days from the date the advanced payments were first issued and proceeds for 90 days. Claims should continue to be submitted as usual, but Medicare will retain payments during this time to repay the amounts advanced.

After the 90-day recoupment period, any remaining amount will be invoiced in a demand letter and interest will begin to accrue.

If you are continuing to experience difficulties with reduced patient volume and cash flow, Grassi Healthcare Advisors is here to help. We recommend the following strategies:

  • Adjust your staffing and other variable expenses based on the new reality of patient volume, including reorganizing your workflow for maximum efficiency.
  • Plot out your revenue and expenses going forward in 12-week periods and strategize cash management and vendor payments.
  • Increase revenue by providing services such as telemedicine in addition to in-person visits
  • Review your revenue cycle processes to make sure that you are collecting everything you are entitled to
  • Explore capital opportunities such as refinancing and bridge loans.

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

Categories: Healthcare Consulting