Senators Introduce Provider Relief Fund Deadline Extension Act

July 29, 2021 - Two Senators introduced the Provider Relief Fund Deadline Extension Act, a bipartisan bill that would extend all Provider Relief Fund (PRF) benefits through the end of the year or the end of the COVID-19 public health emergency period.

Senators Michael Bennet (D-Colo.) and Kevin Cramer (R-N.D.) introduced the bill following objections from clinicians across the country regarding the original June 30th deadline to use PRF money.

“This public health emergency has strained every level of America’s health care system, and it’s not over yet. Because of budget constraints and other factors, many hospitals and providers, especially in rural areas, struggled prior to the pandemic.” Bennet explained in a press release.  

“Now, they face the possibility of having to pay back much-needed funds before they are out of the woods. We need to extend the payback deadline to ensure hospitals and providers can adequately serve their communities as we work to bring this pandemic to an end.”  

In early June, HHS extended the deadline for providers who received a total of at least $10,000 between June 30th and December 31st of 2020, providing some additional flexibility. Providers who received funds between January 1st and June 20th of 2021 now have until June 30th, 2022.

Industry groups were initially satisfied with the deadline extension, but a June 22nd letter from AHA asked for a further extension of PRF benefits, arguing that providers need more time and resources to combat the pandemic.

“It is important to recognize that hospitals are continuing to experience exactly these increased expenses and lost revenues. Moreover, hospitals have worked very hard as partners with HHS and the government in providing vaccinations, particularly in vulnerable communities,” the AHA letter argued.

“Consequently, we strongly believe that they should be able to continue to use PRF money “to prevent, prepare for, and respond to coronavirus,” as intended under the law, regardless of when they happened to receive a PRF payment.”

The new bill would introduce further deadline flexibility and enable providers to use their PRF funds through the remainder of the public health emergency period.

The Government Accountability Office (GAO) recently recommended that HHS inform the public on its plans for unused PRF money. Approximately $43.7 billion of the initial $178 billion allocated toward PRF remains untouched, according to a July 19th GAO report.

HHS told GAO that they would not be able to provide detailed time frames for all funds, since the department wishes to remain flexible and open to providing funds as they are needed.

The Bipartisan Infrastructure Framework, introduced in early July, poses another threat to PRF benefits. The framework aims to invest $1.2 trillion into transportation, clean energy, and broadband, but at the expense of unspent PRF money and an extended mandatory Medicare sequestration.

Six major healthcare groups, including AHA and AMA, recently wrote a letter to top lawmakers urging them to reconsider extending the mandatory Medicare sequestration and using healthcare funds to support infrastructure plans.

“Medicare funds should not be used to pay for roads and bridges,” the letter stated.

“We would ask that none of these COVID-19 health care relief funds be used for the purpose of funding an infrastructure package, given the ongoing need for health care providers to offer assistance to their patients and communities.”