Reporting & Other Tips for the CARES Act Provider Relief Fund

bearing account, the value of interest earned on those PRF payments must also be reported. The reportable use of PRF distributions includes the interest earned on those PRF distributions.

4. Non-Financial Information

Non-financial information for reporting includes a PRF recipient’s number of personnel (i.e., full time, part time, contract, other), total rehires, total new hires and total personnel by labor category, total number of patients and types of visits (i.e., in person or telehealth visits, admissions, residents), and information regarding the facility (i.e., total available staffed beds). 

Auditing & Enforcement

The PRF terms and conditions generally indicate that provider-recipients of payment distributions must promptly submit records and documentation of expenditures upon the request of HHS and fully cooperate with audits by HHS, the Office of the Inspector General (OIG) or the Pandemic Response Accountability Committee. 

The HHS has warned that significant anti-fraud monitoring of the funds would occur and that the OIG would provide oversight to ensure the funds were used appropriately to comply with the applicable terms and conditions. The HHS has indicated that non-federal reporting entities who received and expended annual federal awards exceeding $750,000 in the aggregate during their fiscal year are subject to single audit requirements.

The record retention and potential audit lookback period is at least three years for providers who retained and expended PRF payment distributions. Therefore, providers should take care to document expenditures accurately and in detail. Deliberate omission, misrepresentation or falsification of any information contained in payment applications or future reports may result in criminal, civil or administrative penalties, including but not limited to revocation of Medicare billing privileges, exclusion from federal healthcare programs and related fines.

Additional PRF Considerations

The Coronavirus Public Health Emergency (PHE) status was renewed by HHS, effective Jan. 21, 2021 for another 90 days. Remaining PRF payments may be expended by healthcare providers through July 31, 2021, which is also the final reporting deadline for providers who did not expend their funds in full by the end of December 2020. 

Providers may have additional opportunities to apply for PRF payments depending on how many providers returned their PRF distributions through the end of December 2020 and based on the recent allocated funds from the Appropriations Act and any future stimulus legislation allocations. 

Providers who have yet to report their PRF distributions, who are seeking additional funding or considering retaining PRF monies should consult a healthcare attorney to review each particular distribution category’s terms and conditions, documentation and reporting requirements, and continue to monitor PRF deadlines, which may be subject to change. 

It is highly recommended that providers consult with certified accountants to review and assist in the preparation of all reporting information, especially the lost revenue and expenses calculations. 

Finally, providers should continue to monitor the HHS CARES Act Provider Relief Fund website, because it is updated from time to time.

Steven M. Harris, Esq., is a nationally recognized healthcare attorney with McDonald Hopkins LLC. Contact him at sharris@mcdonaldhopkins.com.