Financial Assistance for Providers
There are several financial assistance programs available for independent providers:
I. The Paycheck Protection Program (PPP), authorized through the federal CARES Act, had a $350 Billion Loan Program for small businesses. Unfortunately, the PPP small-business loan program designed to support businesses hit by the pandemic has run out of money. KeyBank alone had over 57,000 small business applications for this loan and closed the portal 10 days ago. There is talk about this fund being replenished. We will be watching for it...
The loan was a great offer because:
i. No fees charged and the loan is fully forgiven if all workers are maintained,
ii. The funds can be used for payroll, mortgage payments, rent, and utilities,
iii. The loan could be up to 2 mos of average salary costs from last year + 25%.
II. The Employee Retention Tax Credit. The employer does not have to apply for a loan. Rather, they take credit on payroll tax filings. Rules for this are:
i. Eligible employers experienced a significant decline in gross receipts during Q1,
ii. A significant decline in gross receipts is if Q1 is less than 50% for Q1 in 2019,
iii. The maximum credit for qualified wages paid to any employee is $5,000.
III. Provider Relief Program Coronavirus Aide Relief and Economic Security Act (aka CARES Act), with funds from the Department of Health and Human Services (HHS). The CARES Act provides $100 billion in relief funds to hospitals and other healthcare providers on the front lines of the coronavirus response. Several of our physician members have received some immediate compensation.
Please note: Facilities and providers must receive Medicare fee-for-service reimbursements in 2019. More details can be found below.
Last Friday HHS announced it would begin disbursing the first $30 million of the emergency fund created under the CARES Act to physicians and other providers via direct payment. If you have questions about how to verify eligibility for payment, and who to contact if you believe you are eligible but did not receive a payment:
i. HHS partnered with UnitedHealth Group (UHG) to deliver the stimulus payments, and physicians should contact UHG’s Provider Relations at 866-569-3522 about eligibility, payment, etc.
ii. HHS has opened the CARES Act Provider Relief Fund Payment Attestation Portal. Physicians who have been allocated a payment from the general distribution must sign an attestation confirming receipt and agree to terms (listed below).
IV. WA State Resource for Financial Impacts
We have received more financial impact information from friends at K & L Gates (below). Their link provides one centralized resource for individuals in WA state looking for information to help with the financial impacts of the COVID-19. Please note that it is not legal advice and may change daily.