Overview of Provider Relief Fund Reporting Requirements for Healthcare Entities

Overview of Provider Relief Fund Reporting Requirements for Healthcare Entities

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By Yann Reichelt, CPA, Business Assurance & Advisory Services Manager

Article 3 in our 3 part series on Provider Relief Fund audit and reporting requirements

Two Reporting Categories for Recipients of Provider Relief Funds

In our previous two articles, we discussed what the Provider Relief Fund is and the related auditing requirements issued by the Department of Health and Human Services. This article focuses on the reporting requirements under the Provider Relief Fund and what healthcare organizations should do to prepare.

Recipients of Provider Relief Funds are required to report funds to reimburse eligible healthcare providers for healthcare related expenses or lost revenues attributable to COVID-19. Healthcare related expenses are those that are attributable to COVID-19 and may be incurred both in treating confirmed or suspected cases of COVID-19, preparing for possible or actual COVID-19 cases, maintaining healthcare delivery capacity, etc. Lost revenue is represented as a negative change in year-over-year actual revenue from patient care related sources. Furthermore, the reporting requirements are broken out into two categories depending on the amount of funding received.

For Recipients of Provider Relief Fund Payments between $10,000 and $499,999

  • Required to report healthcare related expenses attributable to COVID-19, net of other reimbursed sources (e.g., payments received from insurance and/or patients, and amounts received from federal, state or local governments, etc.) in two categories (1). G&A expenses and (2) Other healthcare related expenses. These are the actual expenses incurred over and above what has been reimbursed by other sources.
  • Total revenue/net charges from patient care related sources (2019 and 2020)
  • Revenue from Patient Care Mix (2019 and 2020). Other Assistance received during 2020 – e.g., Paycheck Protection Program loans, FEMA CARES, business insurance, etc.

For Recipients of Provider Relief Fund Payments $500,000 or More

  • The reporting requirements are the same for healthcare expenses and lost revenue for organizations that received more than $500,000 of PRF payments, except that they must also include more detailed information within the two categories of G&A expenses and other healthcare related expenses.
  • Additional G&A expenses required to be reported:
    • Mortgage/rent
    • Insurance
    • Personnel
    • Fringe benefits
    • Lease payments
    • Utilities/operations
    • Other G&A expenses considered to be part of overhead structure
  • Additional healthcare related expenses attributable to COVID-19 incurred over and above what has been reimbursed:
    • Supplies
    • Equipment
    • Information technology
    • Facilities
    • Other healthcare related expenses

Additional non-financial data will also be reported by quarter

  • Facility, staffing and patient care
  • Change in ownership

Summary of full reporting requirements

Summary of reporting requirements

Key Reporting Dates

What should healthcare entities be doing to prepare?

  1. Follow accounting policies and procedures for COVID-19 expenses and ensure proper record retention.
  2. Maintain internal controls over compliance by documenting any changes in internal control due to COVID-19 funding. Focus on the following areas: payroll, non-payroll, and procurement.
  3. Understand compliance requirements promulgated by the Department of Health and Human Services.
READ OUR FULL SERIES OF ARTICLES ON THE PROVIDER RELIEF FUND FOR HEALTHCARE ENTITIES

Provider Relief Fund: Help for Healthcare Practices Impacted by COVID-19

Audit Requirements under the Provider Relief Fund


About the Author

Yann has experience with auditing procedures, financial reporting, business process reviews, and evaluation of internal controls. Prior to joining Keiter, Yann worked for Virginia Commonwealth Department of Accounts as a Fiscal Technician where he assisted in providing a system of accounting, financial reporting, and internal control adequate to protect and account for the Commonwealth’s financial resources.  In addition, he worked for Altria Client Services as a Corporate Audit Intern where he worked with the audit team in the planning and accumulation of evidence for internal audits.

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The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.

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