HHS Announces $413M in Provider Relief Fund Phase 4 Payments

Through the Health Resources and Services Administration (HRSA), HHS has announced another series of Provider Relief Fund Phase 4 payments totaling $413 million for healthcare providers that have been impacted by the COVID-19 pandemic.

More than 3,600 providers across the country will receive funds from this fourth round of Phase 4 payments.

“These funds have helped save lives throughout the pandemic,” HHS Secretary Xavier Becerra said in the press release. “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.”

HHS has distributed nearly $12 billion in Provider Relief Fund Phase 4 payments to more than 82,000 healthcare providers since December 2021. HRSA has also provided around $7.5 billion in American Rescue Plan Rural payments to over 44,000 providers.

HHS first announced its plan to distribute $25.5 billion in Provider Relief Funds in September 2021. The department said it would provide $17 billion in Phase 4 general distributions and $8.5 billion in American Rescue Plan payments for rural providers.

The first batch was distributed in December 2021, with around 69,000 providers receiving $9 billion. Approximately 7,600 providers received $2 billion during the second round in January 2022, and 4,100 providers received $560 million in February 2022 during the third batch of funds.

Phase 4 payments aim to help smaller providers that faced significant revenue losses during the COVID-19 pandemic, HHS said. The funding round also includes bonus payments for providers that serve Medicaid, Children’s Health Insurance Program (CHIP), and Medicare beneficiaries.

“Healthcare providers are doing critical work on the frontlines of the fight against COVID-19,” HRSA Administrator Carole Johnson stated in the press release. “Provider Relief Fund resources are continuing to help meet these essential needs and maintain access to key health services across the country.”

Following the most recent round of payments, HHS has processed around 89 percent of Phase 4 applications. The remaining applications require additional manual review, which HRSA said it is working to process as quickly as possible.

Providers that receive funds during the first half of 2022 can use them until June 30, 2023.

The funding aims to help healthcare providers prevent, prepare for, and respond to the COVID-19 pandemic. The payments can help support patient care or assist hospitals in recruiting and retaining staff members.

Hospitals and health systems have grappled with severe workforce shortages during the pandemic, including nurse staffing shortages and pharmacy technician staffing shortages.

Even with the $25.5 billion planned relief payments, health systems are struggling financially. In the past couple of months, the American Hospital Association has urged Congress to allocate another $25 billion to the Provider Relief Fund and extend the moratorium on Medicare payment cuts.