HHS OPENS RELIEF FUNDS TO NURSING HOMES WITH RECENT OWNERSHIP CHANGES

The federal government is making COVID-19 relief funds available to the operators of facilities that changed hands in the months leading up to the coronavirus pandemic, however the window to apply is not very long.

In order to assist providers without undue delay, the Department of Health and Human Services (HHS) rushed out relief dollars to health care providers with little warning, sending billions to providers, but there were some errors involving facilities that had recently changed hands.

Because HHS based its relief payments on Taxpayer Identification Number (TIN) information on file as of 2019, nursing homes that were sold or transferred toward the end of last year or in early 2020 received emergency Medicare funds for businesses they no longer controlled, while the current owners received nothing.

At one time, HHS said they would not reissue payments returned by the former owners to the new owners.  HHS late last week changed that policy with an update to its CARES Act application and timeline rules.

From August 10^th until August 28^th, providers whose relief funds remain stuck in limbo can submit revenue information and proof of ownership change to HHS for consideration.

“Prior owners are required to return the payments to HHS, if they cannot attest to providing diagnoses, testing, or care for individuals with possible or actual cases of COVID-19 on or after January 31, 2020,” HHS warned. “For program integrity considerations, previous owners are precluded from transferring funds to new owners who may qualify and can attest to providing care for possible or actual COVID 19 cases.”

The HHS announcement also extended the general timeline for providers to apply for relief based on prior Medicaid reimbursements through August 28.

To read the HHS press release, click here.

For updated information and data on the Provider Relief Fund, visit http://hhs.gov/providerrelief.