HHS extends deadline to accept or reject CARES Act Provider Relief Funds
On May 7, 2020, the Department of Health and Human Services (HHS) announced an extension on the deadline for providers to accept or reject automatic payments of CARES Act Provider Relief Funds. The original 30 day deadline from receipt of payment has now been extended to give providers a total of 45 days to attest and accept the Terms and Conditions. If providers do not wish to accept the funds they still need to contact HHS and initiate returning the payments.
HHS directed providers receiving the automatic Relief Fund payments to respond within 45 days of payment by utilizing the HHS Provider Relief Fund online portal. The CARES Act Provider Relief Fund Payment Attestation Portal will guide providers through the attestation process to accept or reject the funds.
HHS provided an example using the first payment date of April 10, 2020, stating that the new 45 day deadline would be May 24, 2020, meaning that the clock starts running on the date of receipt and is determined by calendar days rather than business days.
Please note that if the provider does not return the payment within 45 days of receipt, such inaction will be viewed as acceptance of the Terms and Conditions. We recommend repayment on the last business day prior to the applicable 45 day deadline.
To date, $50 billion from the CARES Act Provider Relief Fund has been distributed to providers impacted by COVID-19. The initial $30 billion was distributed between April 10 and April 17, and the second distributions from an additional $20 billion were made on or after April 24, 2020. Providers receiving funds through this second set of distributions are also required to submit prior revenue data through the General Distribution Portal if accepting these funds.
For additional information on the CARES Act and Provider Relief Funds, please contact the attorneys below.