Building on the nearly $9 billion in funding already granted to the Provider Relief Fund (PRF) and healthcare providers since the start of the COVID-19 pandemic, the U.S. Department of Health and Human Services (HHS) announced plans to make more than $2 billion of additional relief available.
These funds, made in Phase 4 General Distribution payments, will benefit more than 7,600 healthcare providers put upon by the COVID-19 pandemic. These funds help providers prevent, prepare for and respond to coronavirus cases by being able to remain in operation or by helping to cover costs for recruitment, medical supplies, IT, and more.
“Provider Relief Fund payments have served as a lifeline for our nation’s heroic health care providers throughout the pandemic, helping them to continue to recruit and retain staff and deliver care to their communities,” HHS Secretary Xavier Becerra said. “This funding is just the latest example of the Biden-Harris administration’s dedication to ensuring that providers continue to have the resources they need to meet the evolving challenges presented by COVID-19 and keep providing critical services to the American people.”
For Phase 4 payments, specifically, equity is a major focus of distribution. These funds can be used to reimburse a higher percentage of losses for smaller providers and even offer bonus payments for providers that serve Medicaid, Children’s Health Insurance Program (CHIP), and Medicare beneficiaries. The HHS reported that about 82 percent of all Phase 4 applications have already been processed.
Total, the HHS has spent more than $18 billion on the PRF and rural provider funding through the American Rescue Plan in the last three months. Of this, nearly $11 billion has been through PRF Phase 4 payments, which have benefited more than 74,000 providers across the nation and its territories. Another nearly $7.5 billion benefited more than 43,000 providers in December 2021 as part of the ARP rural payments.
“The COVID-19 pandemic is an unprecedented challenge for healthcare providers and the communities they serve,” HRSA Administrator Carole Johnson said. “The Provider Relief Fund remains an important tool in helping to sustain the critical healthcare services communities need and support the healthcare workforce that is delivering on the frontlines every day.”