HHS Amends CARES Act PRF Reporting Requirements

Thoughtware Alert Published: Oct 23, 2020
Healthcare professionals having a meeting

On October 22, 2020, the U.S. Department of Health & Human Services (HHS) amended its Post-Payment Notice of Reporting Requirements, which it previously released on September 19, 2020. The key changes to the instructions are as follows:

  1. Recipients will report their use of Provider Relief Fund (PRF) payments using their normal method of accounting (cash or accrual basis). The September 19 instructions were not clear on the method of accounting to use. HHS has now clarified this issue. 
  2. The biggest change in the amended instructions is the definition of lost revenues. Recipients may apply PRF payments toward lost revenue, up to the amount of the differences between their 2019 and 2020 actual patient care revenue. This is a significant change from the September 19 instructions. The September 19 instructions defined lost revenues as a negative change in year-over-year net patient care operating income. 

    If recipients do not expend PRF funds in full by the end of calendar year 2020, they will have an additional six months in which to use remaining amounts for expenses attributable to coronavirus but not reimbursed by other sources, or to apply toward lost revenues in an amount not to exceed the difference between 2019 and 2021 actual revenue. 
  3. The amended instructions expounded on the definition of the Reporting Entity. The Reporting Entity is the entity (at the Taxpayer Identification Number (TIN) level) that received one or more PRF payments, OR an entity that meets the following three criteria: 1) is the parent of one or more subsidiary billings TINs that received General Distribution payments, 2) has associated providers that were providing diagnoses, testing, or care for individuals with possible or actual cases of COVID-19 on or after January 31, 2020, and 3) is an entity that can otherwise attest to the Terms and Conditions. 

    The Reporting Entity may still report on and direct the use of General Distribution payments. The General Distributions can be moved among the reporting entity and its subsidiaries. However, if a subsidiary TIN received a Targeted Distribution payment, the subsidiary TIN must retain the use of those funds. Targeted Distributions cannot be shared among the reporting entity and its subsidiaries. This guidance remains unchanged from the September 19 instructions. 


HHS still lists the date the reporting portal will be available as January 15, 2021, with the first reporting deadline for all providers on the use of PRF funds noted as February 15, 2021. The final reporting deadline for providers that did not fully expend PRF funds prior to December 31, 2020, is still listed as July 31, 2021. 

To learn more about the October 22 HHS-released requirements, sign up for our national webinar, “Provider Relief Funds & Other CARES Act Updates.” 

For more information, reach out to your BKD Trusted Advisor™ or submit the Contact Us form below.

This information is only valid as of the date of this publication and is subject to change. The content was presented for illustrative purposes and your information only. Applying this information to your situation requires careful consideration of facts, circumstances, and timing of requirements. Consult your BKD advisor or legal counsel to apply to your unique situation and circumstances.

Related Thoughtware

Kate & Ben — How can we help you? Contact Us!

How can we help you?