While the Oct. 22 change addresses some of the markets concerns, the lost profits estimation might punish hospitals that expanded their reach in some way in late 2019 or early 2020, as their revenue might be greater in 2020 since they purchased a new healthcare facility, but it was still lower than the allocated amount..
HHS has actually reversed a modification made in September to COVID-19 relief grant reporting after hospitals cautioned it might result in many needing to return funds implied to offset coronavirus-related expenditures or lost revenue..
Congress designated $175 billion in relief funds for suppliers through the Coronavirus Aid, Relief and Economic Security Act, Paycheck Protection Program and Health Care Enhancement Act.
The newest modification, posted Oct. 22, permits hospitals to calculate lost earnings by comparing income from all of 2019 to 2020..
Alia Paavola –
Friday, October 23rd, 2020
In June, HHS stated that hospitals might determine lost earnings by comparing actual or allocated profits for 2019 and 2020. In September, HHS changed the reporting requirement and said suppliers had to compare net operating earnings rather.
HHS said the September formula modification was made to “limit some suppliers from receiving distributions that would make them more successful than they were before the pandemic.”.
Healthcare facilities argued that the September formula modification and meaning of lost income would “need numerous healthcare facilities to return [provider relief funds] and included a set of metrics that were just “impractical and unreasonable.”.
Medical facilities likewise argued the requirements revealed in September were substantially various from the June requirements..
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