Many of our clients have already received the HHS PPE subsidy equal to 2% of practice revenue reported on their most recently filed tax return.  Along with the money showing up in their bank account, these practice owners also received a request to submit an attestation that the funds will be used properly.

We have noticed two themes to the questions we’re receiving.  The first matter is how the money needs to be spent.  HHS provides guidance in the Acceptance of Terms and Conditions available at: https://www.hhs.gov/sites/default/files/terms-and-conditions-medicaid-relief-fund.pdf:

The Recipient certifies that the Payment will only be used to prevent, prepare for, and respond to coronavirus, and that the Payment shall reimburse the Recipient only for health care related expenses or lost revenues that are attributable to coronavirus.

Since most practices were closed for a few months earlier this year, this subsidy can be used to repay the practice for “lost revenues that are attributable to the coronavirus”.

The second matter relates to clients who do not have their own practice, but instead, work as an Associate at other practices and get paid as Independent Contractors.  We feel anyone paid in this manner isn’t eligible for the subsidy based on the second of six requirements posted by HHS at: https://www.hhs.gov/sites/default/files/medicaid-provider-distribution-instructions.pdf:

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

Requirement #2 of 6.

Either

  • Must have either (i) directly billed their state Medicaid/CHIP programs or Medicaid managed care plans for healthcare-related services during the period of January 1, 2018, to December 31, 2019, or (ii) own (on the application date) an included subsidiary that has either directly billed their state Medicaid/CHIP programs or Medicaid managed care plans for healthcare-related services during the period of January 1, 2018, to December 31, 2019; or
  •  Must be a dental service provider who has either (i) directly billed health insurance companies for oral healthcare-related services, or (ii) owns (on the application date) an included subsidiary that has directly billed health insurance companies for oral healthcare-related services; or
  •  Must be a licensed dental service provider who does not accept insurance and has either (i) directly billed patients for oral healthcare-related services, or (ii) who owns (on the application date) an included subsidiary that does not accept insurance and has directly billed patients for oral healthcare-related services