This week brings more news for the Nation’s healthcare providers. We have compiled the latest summary of what is in the news for physicians.
SBA Paycheck Protection Program Loans
Physician practices make up a significant number of the 60 million small businesses in America. The SBA PPP loan program funds 2 months of payroll and other qualified expense in largely forgivable loans. Sadly, the predictably popular program ran out of funds last week in less than two weeks from its inception. Hopefully you were able to secure one of these loans, however, if you were late you may still be able to take advantage of this program. As of this morning, news reports are claiming that an appropriation bill that replenishes the fund is close to approval. The latest reports claim that the bill includes $300 billion in additional PPP funding, $50 billion in disaster loans, $75 billion in hospital funding, and $25 billion for testing.
Provider Relief Payments (CARES Act)
One less understood feature of the CARES Act was $100 billion set aside to support the Nation’s healthcare providers. On Friday, April 10th, CMS made the first distribution of the funds without any forewarning. More alert providers noticed an unexplained deposit of roughly 6% of last year’s Medicare payments marked as HHSPAYMENT. While there is little expected to keep the funds (already disbursed), you will need to log into a website and sign an attestation. This distribution accounts for only 30% of the funds, as another $70 billion remains available. We believe it is likely the next round of funding will likewise lack advance announcement.
Phase 4 Coronavirus Stimulus Funding
Congress is actively working on the next round of stimulus funding. The bi-partisan Problem Solver’s Caucus, formed in the House with 50 Congressional representatives to break gridlock, has proposed a reopening and recovery “back to work” checklist heavily focuses on expanded testing, ensuring sufficient PPE availability, monitoring acute care capacity, reestablishing resilient supply chains, and other practical considerations. This framework will likely play a role in developing funding priorities of future stimulus and infrastructure legislation which could be expected to pass in the next month.
Advanced Accelerated Payments
Providers should be aware that they can still apply for an advance payment of up to 3 months of Medicare fee for service payments with a 120-day repayment deferral. These are interest free and are recouped from future payments during the repayment period. It provides temporary relief for provider cash flow problems during this crisis. They are applied for through your MAC and funded within 7 days.
SBA EIDL Program
The SBA Emergency Impact Disaster Loan Program provides potential loan relief for small businesses. It also includes an immediate grant of up to $10,000. Currently this program is suspended pending additional funding, but as stated earlier this funding is expected to be approved within days. Interested providers should prepare now to apply for this program.
Keep Well Practice Management Division