Physician Financial Support: Important Cares Act Provisions by Syed & Aadil

Recently passed Coronavirus Aid, Relief, and Economic Security Act (CARES) act has important provisions that may help support physicians and health care providers.

Medicare Advance Payments: Health care providers who participate in Medicare and losing income are allowed to apply through Center of Medicare & Medicaid Services (CMS) for advance payment. In order to qualify:

• Health care provider has not filed for bankruptcy, or under active medical review or investigation and no record of Medicare overpayment delinquency.
• Have billed Medicare within the last 180 days.

Qualified physicians may be able to request up to 100% of the Medicare payments for the last 90 days through Medicare Administrative Contractor (MAC) website. The repayment starts after the 120 days from when the advance payment balance will be offset from new claim payments.

Medicare sequestration relief:  Medicare healthcare providers would receive a 2% boost in payment.

Medicare telehealth services: CMS extends Medicare telehealth service coverage. Medicare will reimburse for the same amount in Telehealth Visit as in-person visits.

Public health and social services emergency fund:

CARES Act has more than $100 Billion funds in a form of grant or financial aid available for hospitals, public healthcare providers including small private practice physicians. This support is for physician practices like gastroenterology, gynecologist or family practice who lost revenue due to reductions of elective procedure or other services due to Covid-19 pandemic. The accurate parameters are not set yet and funds will be governed by US Dept. of Health & Human Services (HHS).  As of now, governmental entities and Medicare and Medicaid providers and suppliers are included. The bill provides HHS the ability to determine the eligibility for physicians/physician practice who lost revenue or incur expenses as a result of the corona virus crisis. There may be a requirement to provide documentation for loss of revenue.  There is an expectation from HHS to release the guidance very soon. Due to a likelihood of strong demand, it is important to take steps now to prepare. Consult with your Financial Advisor and CPA to calculate your revenue loss so that you are ready to apply as soon as the forms become available.

PPP Loan and SBA EIDL Loan: Many physician practices may also qualify for the Paycheck Protection Program and EIDL loan which are part of the CARES Act. You can learn more about these programs by visiting PPP Forgivable Loan Article.

We are closely monitoring the new developments in Cares Act as guidelines keep coming from the US Treasury and HHS. We will try our best to keep you well informed in this crucial time. A big thank you to all the physicians and health care providers who are on the front lines of this pandemic and serving us.