Coronavirus Update for Thursday, November 20

The following is the latest COVID-19 information from the federal government as of 3:30 p.m. on Thursday, November 19.

Provider Relief Fund

The Provider Relief Fund web page has been updated with the following notice:

The application deadline for the Provider Relief Fund Phase 3 General Distribution was Nov. 6, 2020. You must have submitted your Taxpayer Identification Number (TIN) for validation by 11:59 p.m. ET on Nov. 6, 2020 for Phase 3 relief funds. If you submitted your TIN for validation by the deadline and your TIN is validated by Nov. 13, you will be able to proceed with submitting your revenue documentation to complete your application by 11:59 p.m. ET on Nov. 27, 2020.

The Provider Relief Fund FAQ has been updated with three new questions and one modified question.

  • (pp. 15-16)  Will the Provider Relief Fund limit qualifying expenses for capital equipment purchases to 1.5 years of depreciation, or can providers fully expense capital equipment purchases?  (Added 11/18/2020)

Expenses for capital equipment and inventory may be fully expensed only in cases where the purchase was directly related to prevent, prepare for and respond to the coronavirus.  Examples of these types of equipment and inventory expenses include ventilators, computerized tomography scanners, and other intensive care unit- (ICU) related equipment put into immediate use or held in inventory; masks, face shields, gloves, gowns; biohazard suits; general personal protective equipment; disinfectant supplies.

  • Can providers include the entire cost of capital facilities projects as eligible expenses, or will eligible expenses be limited to the depreciation expense for the period?  (Added 11/18/2020)

Expenses for capital facilities may be fully expensed only in cases where the purchase was directly related to preventing, preparing for and responding to the coronavirus. Examples of these types of facilities projects include upgrading a heating, ventilation, and air conditioning (HVAC) system to support negative pressure units; retrofitting a COVID-19 unit; enhancing or reconfiguring ICU capabilities; leasing or purchasing a temporary structure to screen and/or treat patients; leasing a permanent facility to increase hospital or nursing home capacity.

  • (p. 16)  Do providers report total purchase price of capital equipment or only the depreciated value?  (Modified 11/18/2020)

Providers who use accrual or cash basis accounting may report the relevant depreciation amount based on the equipment useful life, purchase price and depreciation methodology otherwise applied. Providers may report an expense for items purchased with a useful life of 12 months or less if in accordance with their existing accounting policies.  For additional information on capital depreciation, please refer to the other Frequently Asked Questions related to capital equipment and capital facility projects.

  • (pp. 24-25)  Providers may have significant fluctuations in year-over-year net patient revenues due to settlements or payments made to third parties relating to care delivered outside the reporting period (2019-2020). Should Provider Relief Fund recipients exclude from the reporting of net patient revenue payments received for care not provided in 2019 or 2020?  (Added 11/18/2020)

Provider Relief Fund recipients shall exclude from the reporting of net patient revenue payments received or payments made to third parties relating to care not provided in 2019 or 2020.

Centers for Medicare & Medicaid Services

Department of Health and Human Services

Centers for Disease Control and Prevention

Food and Drug Administration