On March 27, 2020, President Trump signed into the law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act includes a Provider Relief Fund (“PRF”) with more than $100 billion to reimburse eligible providers for healthcare-related expenses and lost revenues attributable to COVID-19. In April, Chilivis Grubman published a client alert cautioning of strict oversight of CARES Act funds. Although the U.S. Department of Health and Human Services (HHS) once described PRF funds as “no strings attached” grants, there are, indeed, many terms and conditions, such as various reporting requirements.

On July 20, 2020, HHS issued a General and Targeted Distribution Post-Payment Notice of Reporting Requirement (“Reporting Notice”). The Reporting Notice reminds health care providers that received at least $10,000 (in the aggregate) from the PRF of their reporting obligations. HHS noted that a reporting system will be available on October 1, 2020, but provided no additional details. HHS also indicated that detailed reporting instructions will be provided by August 17, 2020. The Reporting Notice also provides long-awaited reporting deadlines.

Reporting Deadlines (subject to change)

  • Providers must report within 45 days of the end of the calendar year 2020 on expenditures through December 31, 2020.
  • Providers that expended all PRF funds before December 31, 2020, may submit a single final report any time after October 1, 2020 – but not later than February 15, 2021.
  • Providers that expend PRF funds after December 31, 2020, must submit a second and final report no later than July 31, 2021.

Providers should review the forthcoming reporting instructions and note the reporting deadlines to ensure timely reporting.  Providers should also review the terms and conditions that were accepted as a condition of receiving the funds from the PRF.  In June, Chilivis Grubman attorneys presented a webinar titled CARES Act Provider Relief Fund — Ensuring Compliance and Avoiding Liability.  In the webinar, we discussed the terms and conditions of the PRF and provided practical tips regarding compliance and avoiding liability.  The webinar is free and can be watched on-demand here.

The attorneys at Chilivis Grubman – which includes a former federal prosecutor – represent businesses and individuals in connection with government investigations and audits, including those conducted by HHS-OIG and the DOJ.  If you need assistance with such matters, please contact us today.