For additional articles related to Provider Relief Funds and changes of ownership, click here.
The Department of Health & Human Services (HHS) finally bestowed good news on providers that recently underwent a change of ownership (CHOW). HHS issued a significant press release on July 31, 2020 related to Provider Relief Funds and Medicare enrollees that recently experienced a CHOW. HHS recognized that its initial $30 billion disbursement relied on 2019 CMS payment data, which meant providers that underwent a CHOW in 2020 did not receive any relief funds. Additionally, where relief funds were disbursed to the outgoing Medicare enrollee/seller, HHS’ FAQs explicitly provided that the funds could not be transferred to the new Medicare enrollee/buyer. This left many post-CHOW providers in a quandary.
In very welcome news, HHS is now providing CHOW buyers with the opportunity to apply for provider relief funding. HHS has indicated that beginning the week of August 10, “providers who experienced change in ownership challenges may submit their revenue information, along with documentation proving a change in ownership, by August 28 for consideration for Provider Relief Fund payment.” Examples of documentation proving a CHOW may include a bill of sale, asset purchase agreement, or operations transfer agreement. We will provide updates as more information becomes available.
For more information, please contact Hedy S. Rubinger or Alexander B. Foster.