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HHS is giving providers $413 million in relief fund payments

Providers can use the payments to respond to workforce challenges through recruitment and retention efforts.

Susan Morse, Executive Editor

Photo: skynesher/Getty Images

The Department of Health and Human Services, through the Health Resources and Services Administration, has announced that more than $413 million in Provider Relief Fund payments is going to more than 3,600 providers across the country. 

This is the fourth round of PRF Phase 4 payments, totaling nearly $12 billion that has been distributed to more than 82,000 providers in all 50 states, Washington D.C., and five territories since November 2021, HHS said. 

This is in addition to HRSA's distribution of American Rescue Plan Rural payments totaling nearly $7.5 billion in funding to more than 44,000 providers nationwide over the past four months.

WHAT'S THE IMPACT?

Healthcare providers can use the payments to continue supporting patient care and respond to workforce challenges through recruitment and retention efforts.

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 and Medicare beneficiaries. 
 
In September 2021, HHS opened applications for $25.5 billion in COVID-19 provider funding. With this latest installment, more than $19 billion of this funding has been awarded.  

PRF payments received in the first half of 2022 can be used until June 30, 2023. With today's payments, approximately 89% 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.

THE LARGER TREND

In January, the American Hospital Association asked for congressional action to distribute the remaining provider relief funds and for HHS to give $25 billion to help alleviate the financial strain caused by COVID-19. 

In February, HHS announced that more than 4,100 providers would get $560 million in PRF payments.

The Urban Institute estimated in October 2021 that $26.8 billion remained of the $175 billion allocated by Congress in provider relief funding as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to support frontline healthcare providers battling COVID-19. 
 

Twitter: @SusanJMorse
Email the writer: SMorse@himss.org