HHS Issues Much Anticipated Updates to Provider Relief Fund Deadlines and Reporting Requirements

Pharmacies throughout the nation have been pleasantly stunned with the discharge of up to date reporting necessities and deadlines in reference to funds acquired from the CARES Act Supplier Aid Fund (PRF). On June 11, 2021, the Division of Well being and Human Companies (HHS) issued the revised post-payment discover of reporting necessities that supersedes all prior variations of the discover.

The up to date necessities replicate the Well being Assets and Companies Administration’s deal with giving suppliers equitable quantities of time to be used of those funds, sustaining efficient safeguards for taxpayer {dollars}, and incorporating suggestions from suppliers requesting extra flexibility and readability about PRF reporting.

Abstract of Key Updates

• The interval to be used of funds is predicated on the date cost is acquired reasonably than requiring all funds for use by June 30, 2021, no matter after they have been acquired.
• Recipients are required to report for every Fee Obtained Interval during which they acquired a number of funds exceeding $10,000 within the combination reasonably than $10,000 cumulatively throughout all PRF funds.
• Recipients have a 90-day interval to finish reporting reasonably than a 30-day reporting interval.
• The PRF Reporting Portal opened for suppliers to submit data on July 1, 2021.

Timing of Required Use of Funds and Reporting Deadlines

The next deadlines apply to funds acquired. If the pharmacy acquired funds throughout greater than one of many intervals recognized beneath, you may be required to report using the funds in every relevant reporting interval—it doesn’t seem that there will probably be a mechanism to report funds from a number of intervals in a single report.

Particulars of Reporting Necessities

Pharmacies will probably be required to report using funds utilizing their regular accounting foundation (i.e., money, accrual, or modified accrual). The next knowledge factors, in related half, will probably be required:

• Curiosity earned on PRF funds
  • For pharmacies that held the PRF cost(s) being reported in an interest-bearing account, the greenback worth of curiosity earned on these PRF cost(s) should be reported.
• Different help acquired by quarter, together with:
  • Division of the Treasury or Small Enterprise Administration funding, together with from the Paycheck Safety Program
  • FEMA funding
  • HHS CARES Act testing
  • Native, state, and tribal authorities help
  • Enterprise insurance coverage proceeds
  • Different COVID-19 associated help
• Use of common and different focused distribution funds for common bills, together with:
  • Mortgage/lease
  • Insurance coverage
  • Personnel
  • Fringe advantages
  • Lease funds
  • Utilities/operations
  • Different bills usually thought-about to be a part of common and administrative bills
• Different well being care associated bills unique of common bills above, together with:
  • Provides associated to the pandemic
  • Required gear
  • IT bills
  • Facility bills
  • Different bills associated to prevention, preparation for, and/or response to the pandemic
• Misplaced revenues that may be calculated in one of many following 3 ways:
  • Distinction between precise affected person care revenues
  • Distinction between budgeted affected person care revenues (previous to March 27, 2020) and precise revenues
  • Some other cheap technique of estimating revenues

Reporting may even require disclosure of great further organizational particulars. You might be inspired to learn the total HHS launch and to remain updated as further reporting steering is made obtainable.

Single Audit Necessities

Pharmacies that acquired greater than $750,000 in federal funds, together with PRF monies, will probably be topic to single audit necessities. There are two reporting choices:

• A monetary audit of using the awards in accordance with Usually Accepted Authorities Auditing Requirements; or
• An audit in compliance with the Single Audit Act.

Extra element about these choices and the corresponding reporting necessities will change into obtainable within the coming weeks and months.

Important Step Ahead

Though there are nonetheless particulars to be decided, the brand new reporting necessities and deadlines are clearly a big step ahead. We anticipate HHS to challenge further FAQs and steering, and we encourage all pharmacies to observe the HHS web site for updates. For now, the pharmacy ought to begin documenting what it could possibly and put together to report on the acceptable time.

Pharmacies ought to overview the up to date discover and plan for assembly the reporting necessities as deadlines come nearer. The pharmacy ought to create a reporting system that ensures all deadlines are met for every of the reporting intervals during which the pharmacy might have acquired funds.

Additional, if the pharmacy has not already categorized its bills into people who have been permitted by the PRF phrases and situations, now is an effective time to begin that course of. Additionally, the pharmacy ought to fastidiously doc misplaced revenues and be ready for an in depth audit to happen. The pharmacy ought to retain all information and contemporaneously word any key objects or details which may be related in a future audit. Over-documentation is at all times most well-liked.

Concerning the Authors

Kelly T. Custer, Esq., is an legal professional with the Well being Care Group at Brown & Fortunato, a regulation agency with a nationwide well being care follow primarily based in Texas. He represents pharmacies, infusion corporations, HME corporations and different well being care suppliers all through the US. Mr. Custer might be reached at (806) 345-6343 or kcuster@bf-law.com.

Jeffrey S. Baird, Esq., is Chairman of the Well being Care Group at Brown & Fortunato, a regulation agency with a nationwide well being care follow primarily based in Texas. He represents pharmacies, infusion corporations, HME corporations, producers, and different well being care suppliers all through the US. Mr. Baird is Board Licensed in Well being Legislation by the Texas Board of Authorized Specialization and might be reached at (806) 345-6320 or jbaird@bf-law.com.