stephen-skok-pp-dental-cpa
By Stephen Skok, Shareholder, Dental Division and Health Care Group

The U.S. Department of Health and Human Services (HHS) recently announced they created new criteria allowing all dentists to apply for the Provider Relief Fund (PRF). Historically, dentists did not qualify for the relief if they did not provide Medicare or Medicaid, so this change in requirements is greatly welcomed. Any dentists may apply for the PRF and if they qualify, they will be reimbursed 2% of their annual reported patient revenue. The Aug. 28, 2020 application deadline is quickly approaching, so Doeren Mayhew’s dental CPAs offer insight into what you’ll need to know to prepare your application.

Application Criteria

For dentists to be eligible to apply for the PRF, according to the American Dental Association (ADA) they must meet all of these requirements:

  • Did not receive a payment from the Medicare-focused initial $50 billion general distribution
  • Did not receive a payment from the Medicaid and Children’s Health Insurance Program $15 billion distribution
  • Filed a federal income tax return for fiscal years 2017, 2018 or 2019 or are exempt from filing a federal income tax return and have no beneficial owner required to file a federal income tax return
  • Provided dental care to patients after Jan. 31, 2020
  • Did not permanently stop offering dental care to patients directly or indirectly via subsidiaries (if the dental office shut down during the COVID-19 health crisis, however, it is still eligible)
  • An individual who has receipts or documented sales from offering dental care reported on Form 1040, Schedule C, Line 1 (this does not include a statutory employee’s income reported on a W-2)

How to Apply

The application is currently available online and must be completed by Aug. 28, 2020. In order to complete an application, dentists will need the following items:

  • Latest federal income tax return
  • Either a Federal Form 941 for the 2020 first quarter or the 2019 Federal Form 941
  • Both the full-time employee (FTE) worksheet and Gross Revenue worksheet

Included in the application is an agreement (found in the terms and conditions portion) that specifies payment within 90 days of receipt cannot be used for the same expenses intended for Paycheck Protection Program (PPP) funds. It is also important to note that certain application information, including which practices receive relief and how much money each practice grosses in a year, will be available to the public. Since this new guidance will likely raise many questions from dentists wishing to qualify, the HHS has issued a list of FAQs to offer insight.

The Time to Apply is Now

With these new favorable changes in place, be sure not to miss out on this opportunity for your dental practice. There are less than two weeks left until the deadline, so be sure to contact Doeren Mayhew’s Dental Division of CPAs and advisors with any questions you may have about the application.