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CARES Act Offers Additional Funds to Healthcare Providers Offering Care, Diagnoses, or Testing Related to COVID-19

Client Alert
April 8, 2020

In order to help prevent, prepare for, and respond to the COVID-19 pandemic, a $100 billion fund, run through the Public Health and Social Services Emergency Fund (PHSSEF), has been made available to cover non-reimbursable costs attributable to COVID-19 under the CARES Act. This fund has been designed to get money into the health care system as quickly as possible. As such, applications will be reviewed, and payments will be made, on a rolling basis. HHS has been given significant flexibility in determining how the funds are to be allocated, as opposed to operating under a mandated formula or process for awarding the funds. While the Secretary of HHS has not yet released guidance on the application process, this is expected in the near future. BMD will provide updates as soon as this information becomes available.

Who is eligible under the PHSSEF Fund?

Eligible entities include hospitals, public entities, and Medicare- or Medicaid-enrolled suppliers and providers that provide COVID-19 related diagnosis, care, or testing.

What expenses qualify for funding?

This funding is meant to cover non-reimbursable costs and expenses related to COVID-19. Examples include:

  • Building or retrofitting new ICUs
  • Increased staffing or training
  • Leasing of properties, medical supplies, and equipment, including personal protective equipment and testing supplies
  • Building of temporary structures
  • Forgone revenue from cancelled procedures

It is important to note that expenses reimbursed or obligated to be reimbursed by insurance or other mechanisms are not eligible. The Secretary of HHS has been instructed to establish a reconciliation process under which payments will have to be returned to the fund if other sources provide reimbursement for expenses.  

BMD will continue to educate health care providers as additional information and further guidance on COVID-19 become available. For questions, contact any Member of BMD's Healthcare & Hospital Law group.

CARES ActProvidersHealthcareHealthcare LawCOVID-19PHSSEF Fund
Client Alert

Telehealth Flexibility Updates: HIPAA, DEA, and CMS

May 12, 2023The Covid-19 Public Health Emergency (PHE) officially ended on May 11, 2023. But what does that mean for telehealth, a field that expanded exponentially during the PHE? Fortunately, many of the flexibilities will remain intact, at least temporarily. This client alert presents a brief overview of the timelines that providers need to follow, but for a more comprehensive review of telehealth flexibilities and when they will endClient Alert, Multimedia

WEBINAR SERIES RECAP | Ending the Public Health Emergency + Post-Pandemic Check-Up

May 10, 2023Some may take the position that the rest of the country already returned to a new “normal” following the COVID-19 pandemic.  But healthcare providers continue to implement COVID protocols and navigate the ever-changing healthcare regulations at both the federal and state levels.  It is important for healthcare providers to take time for a “Healthcare Check-Up” with the start of 2023 and the ending of the Public Health Emergency (“PHE”).Client Alert

Sharp Rise in False Claims Act Cases - Navigating the FCA Waters

May 5, 2023Recently, on April 18, 2023, the United States Supreme Court heard arguments regarding the FCA’s scienter, or mental state, requirement. To prove violation of the FCA, the statute requires that a defendant “knowingly” file false claims for payment. The term “knowingly” is defined within the statute to mean a person that acts with actual knowledge, deliberate ignorance, or reckless disregard. Circuit courts are split on how to interpret and apply the knowledge element of the FCA, and based on the Supreme Court’s decision, there will be a large impact on healthcare defendants and their businesses as well as anyone who contracts with, or receives money from, a federal program. A broader interpretation of the FCA would unnecessarily target and stifle healthcare, and other businesses, for simple errors in daily operations. This goes against the intended application of the FCA, which was to prevent fraudulent activity.Client Alert

Areas of Opportunity in Columbus: Highlights from the Columbus Opportunity Summit

May 5, 2023On April 27, 2023 Columbus Business First held its annual Columbus Opportunity Summit, bringing together business and economic development leaders to provide an update on how Central Ohio is preparing for expected growth in the coming years, an issue heightened by the arrival of Intel at its 1,000 acre site in Licking County, just outside of Columbus. The site will be home to two new chip factories with room to grow to a total of eight factories and is a $20 Billion investment.Client Alert

BREAKING: Biden Administration Has Officially Ended the Two Remaining COVID Vaccine Mandates

May 2, 2023As of May 1, 2023, the Biden Administration has officially ended the two remaining COVID vaccine mandates: (1) the Federal Contractor Mandate, and (2) the CMS Healthcare Provider Vaccine Mandate.
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