Dept. of Health & Human Services Announces Distribution of $1.75 Billion in Provider Relief Funds
The Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), today announced more than $1.75 billion in Provider Relief Fund payments to 3,680 providers across the country. With this disbursement, HRSA has distributed approximately $13.5 billion from the Provider Relief Fund to nearly 86,000 and nearly $7.5 billion in American Rescue Plan (ARP) Rural payments to more than 44,000 providers since November 2021.
“Health care providers have been tireless in protecting their communities and working to maintain access to health services during the pandemic,” said HRSA Administrator Carole Johnson. “Provider Relief Fund resources continue to make it possible for providers to recruit and retain key personnel, implement safety measures, and keep their doors open to care for their patients.”
In September of 2021, HHS opened applications for $25.5 billion in COVID-19 provider funding. With this latest round of payments, nearly $21 billion of this funding has been distributed. Phase 4 payments reimburse smaller providers for a higher percentage of losses during the pandemic and include bonus payments for providers who serve Medicaid, Children's Health Insurance Program (CHIP), and Medicare beneficiaries.
Providers can use Provider Relief Fund payments received in the first half of 2022 to cover losses and expenses until June 30, 2023. With these latest payments, approximately 92 percent of all Phase 4 applications have been processed. Remaining applications require additional manual review and HRSA is working to process them as quickly as possible.
Provider Relief Fund payments have played an important role in the national response to COVID-19, helping health care providers prevent, prepare for, and respond to the coronavirus.
Health care providers can use the payments for a variety of COVID-related expenses. These include maintaining access to care for patients by addressing workforce challenges through recruitment and retention efforts (PDF).