Key Takeaways
Are you prepared to meet the stringent reporting and audit requirements for the Provider Relief Fund (PRF) and American Rescue Plan (ARP)? Compliance with these programs is crucial for healthcare providers looking to avoid penalties and ensure the proper use of funds. With significant financial support on the line, understanding and adhering to the requirements is essential to maximize the benefits and protect your organization.
The PRF Reporting Portal is now open for Reporting Period 7 (RP7). Should you get PRF or ARP Rural payments totaling more than $10,000 between January 1 and June 30, 2023, you have to disclose fund use by September 30, 2024, at 11:59 p.m. ET.
Penalties will follow for non-compliance, but providers with extenuating circumstances can ask for a one-time extension. Those receiving more than $750,000 must go through compliance audits.
The Provider Relief Fund (PRF) was created to assist healthcare providers during the COVID-19 pandemic. Through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Department of Health and Human Services (HHS) distributed funds to qualified providers for healthcare-related expenses and lost revenues due to COVID-19 and to reimburse for testing and treating uninsured individuals with COVID-19. Over $134 billion in funds have been distributed through various phases of general, targeted, and American Rescue Plan (ARP) rural distributions.
With a total allocation of $178 billion, PRF payments are distributed in phases to eligible providers, ensuring that hospitals, clinics, and other healthcare facilities receive necessary financial assistance.
The American Rescue Plan Act of 2021 provides an additional $8.5 billion specifically for rural healthcare providers. This fund is intended to cover expenses and lost revenues due to COVID-19, with an emphasis on supporting underserved and rural communities. Understanding the ARP’s specific provisions and financial allocations helps providers maximize their benefits.
To maintain compliance with PRF and ARP standards, healthcare providers have to follow particular reporting rules. Focusing on expenses or lost income specifically linked to COVID-19, reports must provide thorough details of how the money was used. The Health Resources and Services Administration (HRSA) stipulates that providers need to submit accurate revenue information by the deadline.
Auditing is a critical component of the PRF and ARP programs to ensure funds are used appropriately. Maintaining complete records and documentation of all income and expenses helps providers be ready for audits. Typical audit findings include discrepancies in revenue calculations and unsupported claims. Being proactive in understanding and preparing for these audits can help providers prevent possible problems and fines.
Providers who received over $750,000 PRF are also subject to a compliance audit. Commercial organizations have two options in fulfilling the audit requirement:
Many organizations have been through their first compliance audit for the HHS awards. Below are some common compliance audit issues identified in these audits:
As providers prepare for the next round of compliance audits, below is information to keep in mind:
Providers often face challenges such as complex reporting requirements and stringent audit procedures. Solutions include:
To assist providers, several valuable resources are available:
Compliance with the Provider Relief Fund and American Rescue Plan reporting and auditing requirements is essential for healthcare providers. Providers can ensure proper fund utilization and avoid potential penalties by understanding these requirements, maintaining accurate records, and utilizing available resources. Staying informed and proactive in compliance efforts will help providers maximize the benefits of these vital financial support programs.
HHS continues to release updated frequently asked questions to assist providers in reporting and understanding the audit requirements for the awards. Providers are urged to continue to monitor the HHS website for updates.
Is your organization fully prepared for upcoming audits?
LBMC has a dedicated PRF team available to assist organizations with reporting and compliance audits. Please reach out to our team to ensure your organization meets the necessary standards and maximizes the benefits of these financial support programs.
Content provided by LBMC’s Courtney Bach and Laura McGregor.
Courtney Bach is a Shareholder in the Audit division of LBMC, focusing primarily on the healthcare industry. She can be reached at courtney.bach@cq-hw.com or 615-309-2481.
Laura McGregor is a Shareholder in the Audit division of LBMC, focusing primarily on the healthcare industry. She can be reached at Laura McGregor laura.mcgregor@cq-hw.com or 615-309-2289.
