HHS Funding for Medicare Providers, Financial Relief Announcement

The U.S. Department of Health & Human Services (HHS) announced they will offer certain Medicare Providers a second opportunity to apply for the General Distribution funds was issued in early Spring of this year. In early spring of this year, the General Distribution issued in two parts:

  • Part 1 was automatic payments totaling $30 Billion sent directly to providers in April. Individual payouts were based on the provider’s share of 2019 Medicare fee-for-service reimbursements.
  • The remaining $20 Billion was distributed in part 2 where Medicare providers that did not submit comprehensive cost reports with CMS were able to submit revenue information via the Provider Portal.

The overall goal of the $50 Billion Medicare General Distribution was to offer providers financial relief equal to approximately 2% of their annual revenues. Per the announcement, some Medicare providers, especially providers with low Medicare revenues, did not apply for part 2 of the general distribution, therefore never receiving the full intended financial relief for this particular distribution.

Starting on August 10th, these Medicare providers will have a second opportunity to submit their revenue information in the Provider Portal.  To be eligible you must be a provider who:

1) Received an automatic payment (part 1) from the Medicare General Distribution in April, and

2) Did not apply for the additional $20 Billion (part 2) of the Medicare General Distribution.

Applicants will have until August 28, 2020 to complete an application to be considered to receive the balance of additional funding (up to 2% of their annual patient revenues).

For more information please click here.


We are monitoring this matter very closely. As always, if you have any immediate questions about how this new provision will impact your practice, please contact Maureen West McCarthy at our medical practice management consulting division, or your current KatzAbosch representative.

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