Healthcare Alert

Frequently Asked Questions: CARES Act Phase 3 Provider Relief Fund General Distribution

October 17, 2020

On October, 1, 2020, the U.S. Department of Health and Human Services (HHS) announced the availability of an additional $20 billion in relief funding for providers – including specifically for behavioral health providers and providers that have already received relief payments. The new funding is intended to offset financial losses and changes in operating expenses due to COVID-19. In addition, some providers who were previously ineligible are invited to apply. Applications for the Phase 3 General Distribution are due November 6, 2020.

DISCLAIMER: Please note that the following FAQ is not intended as legal or accounting advice and is no substitute for your own research and due diligence. Questions regarding eligibility for Provider Relief Fund distributions may be sent directly to HHS. HHS also maintains a detailed FAQ on its website and a provider support line available by calling (866) 569-3522; for TTY dial 711. Hours of operation are 7 a.m. to 10 p.m. Central Time, Monday through Friday.

What is the Phase 3 General Distribution and how is it different from the previous Provider Relief Fund distributions?
The Phase 3 distribution is intended primarily to: (1) expand the scope of providers eligible to receive 2% of annual patient care revenue; and (2) to provide add-on payments to providers for revenue losses and expenses attributable to COVID-19. As noted above, a wide range of providers are eligible for funding under Phase 3, including providers that have already received funding under previous distributions, behavioral healthcare providers and dental providers who do not bill Federal healthcare programs, and those providers who began practicing in 2020.

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