HHS Releasing Another $2B in Phase 4 General Distribution Funding

HHS has just issued the below press release indicating that they are releasing another $2B in Phase 4 General Distribution funding.  When the first round of distributions occurred in December, HHS noted that they had processed approximately 75% of applications.  In the release below, HHS raises that number up to 82% of Phase 4 applications.  Therefore, they are still processing the remaining 18% of applications received for funding; if you applied and did not receive funds or a notification that you did not qualify in December or today, then HHS should still be processing your application.

Please let us know if you have any questions.  Thank you as always!

With this funding, more than $18 billion will have been distributed from the Provider Relief Fund and the American Rescue Plan Rural provider funding in the last three months.

The U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), is making more than $2 billion in Provider Relief Fund (PRF) Phase 4 General Distribution payments to more than 7,600 providers across the country this week. These payments come on the heels of the nearly $9 billion in funding that was already released by HHS in December 2021. With today’s announcement, a total of nearly $11 billion in PRF Phase 4 payments has now been distributed to more than 74,000 providers in all 50 states, Washington D.C., and five territories. This is in addition to HRSA’s distribution of American Rescue Plan (ARP) Rural payments totaling nearly $7.5 billion in funding to more than 43,000 providers in December 2021.

“Provider Relief Fund payments have served as a lifeline for our nation’s heroic health care providers throughout the pandemic, helping them to continue to recruit and retain staff and deliver care to their communities,” said Health and Human Services Secretary Xavier Becerra. “This funding is just the latest example of the Biden-Harris administration’s dedication to ensuring that providers continue to have the resources they need to meet the evolving challenges presented by COVID-19 and keep providing critical services to the American people.”

Provider Relief Fund payments have been critical in helping health care providers prevent, prepare for, and respond to coronavirus. Providers have used the funds to remain in operation and to continue supporting patient care by covering a variety of costs including personnel, recruitment and retention initiatives, medical supplies, information technology, and many other functions.

“The COVID-19 pandemic is an unprecedented challenge for health care providers and the communities they serve,” noted HRSA Administrator Carole Johnson. “The Provider Relief Fund remains an important tool in helping to sustain the critical health care services communities need and support the health care workforce that is delivering on the frontlines every day.”

Phase 4 payments have an increased focus on equity, including reimbursing a higher percentage of losses for smaller providers and incorporating “bonus” payments for providers who serve Medicaid, Children’s Health Insurance Program (CHIP), and Medicare beneficiaries. Approximately 82 percent of all Phase 4 applications have now been processed.

View a state-by-state breakdown of all Phase 4 payments disbursed to date.

View a state-by-state breakdown of all ARP Rural payments disbursed to date.

As individual providers agree to the terms and conditions of Phase 4 payments, it will be reflected on the public dataset.

For additional information, visit www.hrsa.gov/provider-relief.