Impact of the Emergency Coronavirus Relief Act of 2020 on the Health Care Industry
The Emergency Coronavirus Relief Act of 2020 (Act) was passed by Congress on December 21, 2021, and provides additional funding and extensions for several programs that impact the health care industry, including the following:
 
  • Creates a second loan from the Paycheck Protection Program (PPP) and the tax deductibility of the PPP loan
  • $3 billion allocated to the Provider Relief Fund (PRF)
  • $25.4 billion for testing and contact tracing
  • Unemployment insurance programs extension
  • Additional allocations for addiction treatment programs and mental health services providers
 
In addition to the $3 billion allocated to the PRF, the law appears to make the two significant changes to the previously existing PRF guidance:

  • Providers may calculate lost revenues using the U.S. Department of Health and Human Services (HHS) FAQ guidance released in June 2020 that includes budget-to-actual.

  • Parent organizations may allocate PRF reimbursement among eligible health care provider subsidiaries, including reimbursements referred to as targeted distributions.
 
The above provisions appear to be very advantageous to health care providers, but the HHS has yet to issue their interpretations of this Act.
For questions or comments regarding this breaking news, contact your ACT representative or email us at info@actcpas.com.