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

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

Posted on December 16, 2021 by Jeff Bostic

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.

Categories: Federal News

News related to: covid-19, payment, provider relief fund

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