The U.S. Department of Health and Human Services (HHS) on April 23, 2020, announced a $20 billion phase two round of funding for health care providers from the $175 billion CARES Act Provider Relief Fund. There is, however, conflicting information about whether a provider who has not previously received funding from the Provider Relief Fund in phase one can apply for this second round of funding. 

Since the portal opened, the California Medical Association (CMA) has heard from physicians that they were kicked out of the application if they indicated that they did not receive a payment from the $30 billion phase one direct deposit disbursement prior to April 25, 2020.

CMA and the American Medical Association (AMA) continue to seek clarification on this matter. In the meantime, absent further guidance from HHS, physicians who did not receive a phase one payment should not apply for phase two funding. For those practices that are eligible for phase two funding, CMA wants to emphasize that you need to submit your most recent tax return, revenue losses from March 2020 and estimated revenue loss for April 2020 from all payers. More details on the submission requirements can be found in CMA’s Financial Toolkit for Medical Practices.

CMA also urges all physicians to read the terms and conditions carefully and make decisions based on their practice circumstances. Practices should also thoroughly document the expenditures from this allocation because they could eventually be audited.

Physicians who did not receive phase one funds and believe they should have been eligible for a payment from the initial $30 billion disbursement should see CMA’s Financial Toolkit for Medical Practices for more information.

HHS said it is working to disburse additional funding to providers with lower shares of Medicare reimbursement (such as pediatricians and OB-GYNs) and Medicaid providers.