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Restating Financial Results
The Department of Health and Human Services (HHS) announced a new $20 billion Phase 3 of the Provider Relief Fund (PRF) General Distribution on Oct. 1, 2020. This news is welcomed by dental practices across the country who were either not able to secure funding the first time around, began practicing between Jan. and Mar. 2020, or require more funding. Similar to Phase 2, Phase 3 PRF funding will be accessible after providers submit an application through the PRF’s Application and Attestation Portal. The application period opened on Oct. 5, 2020, and dental providers have until Nov. 6, 2020, to submit their applications.
Dentists who have already applied for funding, but have not yet received PRF payments of 2% of patient revenue can now receive equal payment (when combined when previous payments, if any). Using the remaining balance, the Health Resources and Services Administration (HRSA) will calculate add-on payments in excess of the 2%. To determine the payments, HRSA will factor in:
While the exact calculation to determine add-on payments remains unknown, the HRSA has cautioned payments won’t be made until all providers’ applications have been reviewed. For dental providers who have been waiting for their Taxpayer Identification Number (TIN) to be validated to receive their Phase 2 funding, any applications that were not submitted by Oct. 4, 2020, will be voided and a new application under Phase 3 will need to be completed.
This announcement from HHS comes shortly after the reporting requirement guidance was announced for providers who have already received PRF funding. The guidance modified previous information on how to calculate both the health care expenses and lost revenue due to COVID-19, leaving many providers confused. The HHS is expected to offer additional guidance to provide clarity.
If your dental practice has not yet applied for PRF funding or is looking to secure a new round of funding, now is the time to do so. With less than a month left until the end of Phase 3, be sure to complete and submit your application as soon as possible. If you have any questions about completing your application, contact Doeren Mayhew’s team of dental CPAs today.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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