The Department of Health and Human Services (HHS) announced Tuesday the release of another $413 million in Provider Relief Fund payments, bringing the department to nearly $12 billion in funds distributed through the COVID-19 support program since November 2021.
The new payments will reach over 3,600 providers across the country, according to HHS, and is the fourth round of funds released under the program’s $17 billion fourth tranche. Roughly $5 billion in funds from that pool remain to be distributed.
HHS said PRF Phase 4 payments have now reached more than 82,000 providers across the country but that approximately 11% of applications remain to be processed. These remaining applications “require additional manual review and [the Health Resources and Services Administration (HRSA)] is working to process them as quickly as possible,” the federal government said.
“These funds have helped save lives throughout the pandemic,” HHS Secretary Xavier Becerra said in a statement. “As we continue to make progress in defeating COVID-19, it’s important to keep supporting our providers with the resources they need so we can all build back better and healthier than before.”
PRF Phase 4 is focused on recouping changes in operating revenues and expenses with bonus payments based on the amount and type of Medicare, Medicaid and Children’s Health Insurance Program (CHIP) services provided from July 1, 2020, to March 31, 2021, according to the agency. Smaller providers are being reimbursed for a high percentage of the changes in their operations.
The last few months of PRF Phase 4 payments were also accompanied by $7.5 billion in HRSA funds distributed to more than 43,000 rural providers since December as part of the American Rescue Plan.
American Rescue Plan funds aim to compensate providers based on the amount and type of Medicare, Medicaid and CHIP services they provided to rural patients between Jan. 1, 2019, and Sept. 30, 2020.
HHS opened applications for both PRF and American Rescue Plan funds back in September. Per the department, PRF payments that providers receive during the first half of this year can be used until June 30, 2023.
HHS wrote in the announcement that PRF payments “have played a key role” in supporting providers as they prevent, prepare for and respond to COVID-19, notably by heading off pandemic-era workforce challenges.
“Healthcare providers are doing critical work on the frontlines of the fight against COVID-19,” HRSA Administrator Carole Johnson said in a statement. “[PRF] resources are continuing to help meet these essential needs and maintain access to key health services across the country.”
Provider industry groups frequently called on HHS to hasten its distributions of PRF Phase 4 relief funds and for Congress to allocate additional support to the relief program.
However, legislators have struggled to come to terms on any new COVID-19 funding during the past few weeks despite warnings from the White House that key initiatives such as reimbursement for uncovered COVID-19 patients are at risk.