Federal Government Starts Distributing Phase Four Provider Relief Funds (PRF)

This week the Health Resources and Services Administration (HRSA) began distributing the $17 billion in Provider Relief Fund (PRF) Phase 4 funding to a broad range of health care providers, including care centers, assisted living, and adult day providers who experienced revenue loss and increased expenses associated with the pandemic.

PRF Phase 4 payments are based on providers' lost revenues and expenditures between July 1, 2020, and March 31, 2021. PRF Phase 4 reimburses smaller providers—who tend to operate on thin margins and often serve vulnerable or isolated communities—for their lost revenues and COVID-19 expenses at a higher rate than larger providers. PRF Phase 4 also includes bonus payments for providers who serve Medicaid or Medicare patients, who tend to be lower-income and have more complex medical needs.

Yesterday’s announcement from HRSA indicates that they are distributing almost $9 billion in PRF Phase 4 dollars this month, including nearly $150 million to almost 1,300 providers in Minnesota. The remaining PRF Phase 4 dollars will be distributed in January as HRSA reviews and approves applications.

According to the terms and conditions for PRF Phase 4 and the targeted rural payments made a few weeks ago, the funds are intended to cover increased costs and lost revenue due to the Covid-19 pandemic. Providers are required to report on their use of PRF funds on a rolling basis. Providers who received payments this quarter will have to report how the funds were used by Dec. 31, 2022.

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