On April 10, 2020, the U.S. Department of Health & Human Services began distributing the first portion of the $30B in funds under the CARES Act Provider Relief Fund. Prior to that initial distribution, on April 7, 2020, Administrator Seema Verma, framed these funds as “grants” and “no-strings-attached”. However, within 30 days of receiving the payment, providers are required to sign an attestation confirming receipt of the funds, and agreeing to the terms and conditions of payment.
Terms and conditions providers are required to agree to include:
- The Recipient certifies: Payment will only be used to prevent, prepare for, and respond to coronavirus, and shall reimburse the Recipient only for health care related expenses or lost revenues that are attributable to coronavirus.
- The Recipient certifies: Payment will not be used to reimburse expenses or losses that have been reimbursed from other sources or that other sources are obligated to reimburse.
- The Recipient shall: Submit reports as the Secretary determines are needed to ensure compliance with conditions that are imposed on this Payment, and such reports shall be in such form, with such content, as specified by the Secretary in future program instructions directed to all Recipients.
- The Recipient shall: Maintain appropriate records and cost documentation including, as applicable, documentation required by 45 CFR § 75.302 – Financial management and 45 CFR § 75.361 through 75.365 – Record Retention and Access, and other information required by future program instructions to substantiate the reimbursement of costs under this award. The Recipient shall promptly submit copies of such records and cost documentation upon the request of the Secretary, and the Recipient agrees to fully cooperate in all audits the Secretary, Inspector General, or Pandemic Response Accountability Committee conducts to ensure compliance with these Terms and Conditions.
As providers continue to apply for, and receive funding from, multiple federal and state agencies and programs,
ACT recommends that providers:
- Establish a dedicated work group to capture and document all costs and lost revenues that have been incurred
- Develop a strategy encompassing all funds received to ensure compliance
- Document compliance with each funding source and be prepared in the event that the funds are subject to audit