DME Suppliers Are Eligible for Phase 4 Provider Relief
WASHINGTON, D.C. (October 7, 2021)—The American Assocation for Homecare (AAHomecare) shared that it had received confirmation from the Health Resources and Services Administration (HRSA), the agency that manages the Provider Relief Fund (PRF), that durable medical equipment (DME) suppliers are eligible for General Distribution Phase 3 and Phase 4 funding.
However, due to DME supplier revenue largely not coming from direct patient care, HRSA will cap DME supplier annual revenue to calculate the PRF payments. HRSA will consider 10% of DME annual gross revenue from claims to be attributed towards patient care. HRSA notes 10% cap is based on ‘industry estimates of revenue and operating expenses from patient care.’ This is a departure from what HRSA noted in the FAQ where they noted DME suppliers are not eligible for Phase 3 or Phase 4 payments.
HRSA allocated $17 billion for Phase 4, and it is available for providers and suppliers that experienced revenue loss and/or increased costs between July 2020-March 2021. Phase 4 is intended to improve equity and will reimburse small providers/suppliers at a higher rate compared to larger organizations, and will offer bonus payments based on the volume of Medicare, Medicaid, CHIP services the applicant provides.
HRSA is accepting applications until Oct. 26. Below is additional information and resources to help suppliers with application submission:
HRSA will host webinars to guide applicants on the application portal:
- Wednesday, Oct. 13, 3 p.m. – 4 p.m. ET—register to attend
- Thursday, Oct. 21, 3 p.m. – 4 p.m. ET—register to attend
The Phase 3 Reconsideration request is also available for suppliers who received the incorrect amount or were denied during the original application opening in 2020. The 10% cap methodology is new as of last month and it is likely that all the suppliers that submitted a Phase 3 application last year were denied. Suppliers that qualify for this reconsideration opportunity should review the information available on the Request a Phase 3 Payment Reconsideration site. HRSA is accepting requests until Nov. 12.
AAHomecare said in a news alert that it is working on getting a clarification on whether DME suppliers are eligible for the American Rescue Plan (ARP) Rural Distribution. The association will notify membership once it has more information.
All applicants should thoroughly review the Terms and Conditions for each funding opportunity and continue to monitor the PRF website. HRSA continues to update and make changes regularly. All payments received from the PRF are subject to future audits and reviews.
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