HRSA Opens Application for Provider COVID-19 Relief Funds

The Health Resources and Service Administration (HRSA) has opened the portal for healthcare providers to apply for part of $25.5 billion in COVID-19 relief funds.

The American Rescue Plan Act will distribute $8.5 billion in funds for rural providers and the other $17 billion will come from Phase 4 of the general Provider Relief Fund distributions.

Providers can apply for and attest to funds using the online portal through October 26, 2021.

HRSA encouraged providers to begin their application as soon as possible, as applications must undergo validation checks before financial information can be submitted. Providers will only need to complete one application to request funds from both programs.

The agency will use existing claims data from Medicaid, Children’s Health Insurance Program (CHIP), and Medicare to determine the payment amounts.

The funding will go to healthcare providers who had high expenses or lost revenue due to the COVID-19 pandemic. It will also help ensure that uninsured individuals have access to COVID-19 treatment if needed.

HRSA hosted the first of four webinar sessions yesterday, September 30, 2021, to offer more information on the funding and assist providers with the application portal. The next three webinars will be held Tuesday, October 5, Wednesday, October 13, and Thursday, October 21, all starting at 3:00 pm eastern time.

The agency aims to distribute the American Rescue Plan Act funds starting in mid-to-late November and the Provider Relief Funds in early-to-mid December.

The Department of Health and Human Services (HHS) announced the funding on September 10, following several urges from hospitals for more COVID-19 relief funds.

“This funding critically helps health care providers who have endured demanding workloads and significant financial strains amidst the pandemic,” HHS Secretary Xavier Becerra, said in the initial announcement. “The funding will be distributed with an eye towards equity, to ensure providers who serve our most vulnerable communities will receive the support they need.”

Both the ARP funding and the Provider Relief Funds will be based on and likely be higher than Medicare reimbursement rates to offset the losses the providers have faced, according to HHS.

“We know that this funding is critical for health care providers across the country, especially as they confront new coronavirus-related challenges and respond to natural disasters,” Acting HRSA Administrator Diana Espinosa, stated in the HHS press release. “We are committed to distributing this funding as equitably and transparently as possible to help providers respond to and ultimately defeat this pandemic.”