The Department of Health & Human Services (HHS) is expected to announce a new phase of Provider Relief Funding (PRF) that would likely cover COVID-related expenses and losses during the third and fourth quarters of 2020 (and potentially first quarter of 2021). Timing of the announcement is unclear, but it would be met with enthusiasm as the last official PRF disbursement was on December 15, 2020 (the PRF distribution timeline may be accessed here). Ahead of any new funding opportunity, providers should be aware of the following:
- Review your calculated COVID-related losses and expenses to determine if they are expected to exceed the amount of PRFs already received, if any. As with previous disbursements, providers will need to be able to demonstrate the need and use of the funds during future reporting periods.
- Familiarize yourself with eligibility requirements for past phases of funding (accessible here) to determine the likelihood that you will be eligible for any new funding. Eligibility requirements for any future funding will likely be similar to past requirements.
- For providers that have undergone or will be undergoing a change of ownership, consider how future PRF distributions will be handled and ensure they are compliant with HHS requirements. In general, parties to an asset purchase may not transfer PRFs, while parties to a stock or membership purchase may transfer funds. For more information, a previous article on PRFs and CHOWs may be accessed here.
- For providers that have not previously applied for funding or those expecting to need to apply again for additional phases, familiarize yourself with the Phase 3 application instructions, sample application, and terms and conditions, as additional phases will likely include similar information and documentation requirements.
The Arnall Golden Gregory Change of Ownership (CHOW) team leads all regulatory aspects of healthcare transactions for investors, operators, managers, capital partners, and developers of every size in all 50 states. The team streamlines the regulatory process so that clients close their transactions on or ahead of schedule. Whether obtaining licensure and Medicare/Medicaid approvals, structuring transactions to expedite closing, anticipating issues to minimize cash flow disruption, negotiating regulatory terms in deal documents, creatively resolving diligence issues, or advising on CHOW guidelines and compliance, the team provides extensive experience and practical solutions. To date, the CHOW team has served as primary regulatory counsel in transactions valued at more than $25 billion.