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New $20B Distribution of Provider Relief Funds

On Oct. 1, the Department of Health and Human Services (HHS) announced phase 3 of the Provider Relief Fund (PRF) general allocation. In this phase, the administration will allocate $20 billion in new funding for eligible providers on the front lines of the coronavirus pandemic, including:

  • providers that already received PRF payments and require additional support;
  • previously ineligible providers, such as those who began practicing in 2020; and
  • an expanded group of behavioral health providers confronting the emergence of increased mental health and substance use issues exacerbated by the pandemic.

Phase 3 is designed to balance an equitable payment of 2 percent of annual revenue from patient care for all applicants with an add-on payment to account for revenue losses and expenses attributable to COVID-19. Providers who did not receive a payment equal to approximately 2 percent of patient care revenue from prior general distributions will be eligible to receive a payment to bring their combined payments to this threshold. Other providers will be eligible for add-on payments that consider a provider’s change in operating revenues from patient care, change in operating expenses, and payments already received through prior PRF distributions.

Providers will be able to apply for funds Oct. 5 through Nov. 6. This new allocation brings the total distribution of PRF payments to $143.9 billion of the total $175 billion available, plus more than $1 billion distributed on a claim-by-claim basis through the PRF COVID-19 uninsured program.

Visit the America’s Essential Hospitals coronavirus resource page for more information about the outbreak.

Contact Senior Director of Policy Erin O’Malley at or 202.585.0127 with questions.

About the Author

Abigail Painchaud is a policy associate at America's Essential Hospitals.

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