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Everything you need to know about BMD and the industry.

Provider Relief Fund Phase 2 & Reporting Requirement Updates – Deadline to Request Phase 2 Funds is August 28, 2020

Phase 2 General Distribution Funding – Deadline August 28, 2020

On July 31, 2020, the Department of Health and Human Services (“HHS”) announced that certain Medicare, Medicaid (managed care and fee-for-service), CHIP, and other providers would be given another opportunity to receive additional Provider Relief Fund payments. HHS has allocated around $15 billion for Phase 2 distribution. Providers are eligible for these new distributions if they fulfill the following criteria and have not yet received a Provider Fund payment equal to approximately 2% of their revenue from patient care. 

To be eligible to apply, the provider must meet all of the following requirements:

  1. Either
    1. Billed Medicare fee-for-service during the period of Jan.1, 2019-Dec. 31, 2019; or
    2. Be a Medicare Part A provider that experienced a change in ownership and billed Medicare fee-for-service in 2019 or 2020 that prevented the otherwise eligible provider from receiving Phase 1 General Distribution payment; or
    3. Billed Medicaid / CHIP programs or Medicaid managed care plans for health-related services between Jan.1, 2018-Dec.31, 2019; or
    4. Billed a health insurance company for oral healthcare-related services as a dental service provider; or
    5. Be a licensed dental service provider who does not accept insurance and has billed patients for oral healthcare-related services; and
  2. Must have either (i) filed a federal income tax return for fiscal years 2017, 2018 or 2019 or (ii) be an entity exempt from the requirement to file a federal income tax return (e.g. a state-owned hospital or healthcare clinic); and
  3. Must have provided patient care after January 31, 2020 (see our blog post from April 10 on how this is broadly defined); and
  4. Must not have permanently ceased providing patient care directly, or indirectly through included subsidiaries; and
  5. If the applicant is an individual, have gross receipts or sales from providing patient care reported on Form 1040, Schedule C, Line 1, excluding income reported on a W-2 as a (statutory) employee.

HHS released this second round of General Distribution funding to help support as many providers as possible. Note that even if a provider received Phase 1 funding, they may still be able to collect Phase 2 funding if their original distribution was less than 2% of their patient care revenues. This includes providers who returned their Phase 1 checks because they were not sure if they would be able to meet the Terms & Conditions. Providers who apply for and receive Phase 2 funds are subject to the same Terms and Conditions that existed for Phase 1 funding. Providers must use the Provider Portal to request the Phase 2 funds. The deadline for these requests is August 28, 2020 at 11:59pm EST

Provider Relief Fund Reporting Requirements Update

One of the terms and conditions that providers had to agree to in order to receive Provider Relief Funds was to submit reports to HHS that are in the form specified by the Secretary of HHS. HHS was scheduled to post guidance by August 17, 2020 regarding the format of these reports. However, this date has come and gone without a full update. Instead, HHS posted a Notice entitled “General and Targeted Distribution Post-Payment Notice of Reporting Requirements” on August 14, 2020. This Notice applies to any providers who received Provider Relief Funds exceeding $10,000 in the aggregate. 

The Notice states that detailed instructions regarding reporting requirements for these providers will be “released soon,” leaving providers in a state of suspense for an undefined future period of time. However, the Notice does clarify that the reporting system will become available to recipients for reporting on October 1, 2020. The Notice also provides details regarding the timing of reports for Provider Relief Fund recipients:

  • All recipients must report within 45 days of the end of calendar year 2020 on their expenditures through the period ending December 31, 2020.
  • Recipients who have expended funds in full prior to December 31, 2020 may submit a single final report at any time during the window that begins October 1, 2020, but no later than February 15, 2021.
  • Recipients with funds unexpended after December 31, 2020, must submit a second and final report no later than July 31, 2021. 

Finally, the Notice repeatedly reminds providers to check hhs.gov/providerrelief for the latest updates. Once more specific reporting guidance is released, BMD’s healthcare team will publish another update to inform providers of these reporting requirements. In the interim, if you have any questions about Provider Relief Funds, please contact Ashley Watson at abwatson@bmdllc.com

A New Formation Solution – is the SSLC Right for Your Business?

In early January 2021, Ohio adopted Senate Bill 276 which established a Revised Limited Liability Company Act (“ORLLCA”) as Ohio Revised Code Chapter 1706, which effectively replaces the current Ohio Limited Liability Company Act (Ohio Revised Code Chapter 1706). The ORLLCA will become effective on January 1, 2022. One of the principal changes within the ORLLCA is the ability to establish “series LLCs”. Ohio becomes the 15th state to adopt a “series LLC” (“SLLC”). The below FAQs will help you better understand the mechanics and nuances of a series LLC.

Surprise! A Cautionary Tale for Out-Of-Network Billing: The No Surprises Act and the Impact on Healthcare Providers

SURPRISE! Congress passed The No Surprises Act at the end of 2020. Providers, particularly those billing as out-of-network providers, should start thinking about strategies to comply with this new law, set to take effect on January 1, 2022. In its most basic sense, the new law prohibits providers from billing patients for more than the in-network cost-sharing amount in most situations where surprise bills happen. It specifically applies to non-government payers and the amounts will be set through a process described in the new law. In particular, the established in-network cost-sharing amount must be billed for the following services:

Ohio Enacts Substantial Changes to Employment Discrimination Laws

In January, Governor Mike DeWine signed into law the Employment Law Uniformity Act, amending the employment protections in the Ohio Civil Rights Act in several significant ways. Such changes to the state’s anti-discrimination and anti-harassment laws have been considered and debated for years and finally made their way into Ohio law. What has changed for employment claims under the amended Ohio Civil Rights Act?

OHIO ADOPTS THE SERIES LLC: Implementation of Ohio’s Revised Limited Liability Company Act is Coming

On January 7, 2021, Ohio adopted S.B. 276. The new legislation establishes the Ohio Revised Limited Liability Company Act (“ORLLCA”) which effectively replaces the current Ohio LLC Act. ORLLCA will be fully effective as of January 2022. While the new law contains numerous changes to the existing LLC landscape, below is an overview of some of the key differences under the ORLLCA.

Will Federal Legislation Open Cannabis Acquisition Floodgate?

Are potential buyers quietly lobbying at federal and state levels to kick open the door to launch a new round of strategic acquisitions? Will presently pending federal legislation, the SAFE and MORE Acts, providing safe harbor for banks and re- or de-scheduling marijuana, be sufficient to mobilize into action major non-cannabis companies that previously shunned the cannabis industry due to the unknown implications of owning businesses whose activities are illegal under federal law?