CLARIFICATION: COVID-19 Update #47 | Additional Distribution of Provider Relief Funds

Lisa Volk and Carl Pucci in Clinical & Quality, Finance & Reimbursement

This is a clarification from yesterday’s member mailing on AHCA’s Update #47 regarding Additional Distribution of Provider Relief Funds:

Two weeks ago, we learned that skilled nursing would be included as part of the stimulus bill’s (aka the CARES Act) $100 billion Provider Relief Fund, when HHS distributed the first $30 billion from the fund and all skilled nursing facilities received 6.2% of their 2019 Part A and Part B Medicare payments. Today, HHS announced an additional $40 billion in distributions, with checks going out as early as this Friday. Here is what we know so far.  

  1. SNFs are clearly part of a tranche of funds that HHS is using to pay providers based on their total revenue. It will distribute $20 billion of the $40 billion based on a percentage of providers total revenue, but will make some adjustment for Medicare revenue, that was recognized in the prior payment. We do not know the exact formula yet, but providers who have a high level of Medicaid and/or Medicare Advantage, will do proportionally better than those who do not. 
  2. HHS is also distributing $10 billion to those in COVID-19 hotspots. This may be for hospitals only. We are verifying that and if we are not part of these funds, we will seek reimbursement for SNF and AL COVID hotspots in future funding. 
  3. HHS is also distributing $10 billion to rural hospitals.   

The additional news is that tomorrow Congress will likely add $75 billion to this fund. That will replenish the fund to slightly over $100 billion. We will work to continue to receive the funding you deserve as you fight the daily battles in your buildings. As we learn more about the formula utilized to distribute the $20 billion, we will let you know.


Lisa Volk, RN, B.P.S., LNHA
Director, Clinical & Quality Services
518-462-4800 x15

Carl J. Pucci
Chief Financial Officer
518-462-4800 x36