HHS distributes $1.75B in Phase 4 COVID-19 Provider Relief Funds

April 22, 2022 – Through the Health Resources and Services Administration (HRSA), HHS has released the fifth round of Phase 4 COVID-19 Provider Relief Funds, which includes $1.75 billion for healthcare providers that have been impacted by the COVID-19 pandemic.

With this fifth batch of funding, HHS has delivered a total of $13.4 billion in Phase 4 Provider Relief Funds to more than 85,000 healthcare providers across the country. California has collected the most in Provider Relief Funds, with almost 12,000 providers receiving $1.7 billion in Phase 4 payments.

Around 3,600 providers that experienced COVID-19-related revenue losses and expenses between July 1, 2020, and March 31, 2021, will receive funds from this round of payments.

California, Texas, and New York are set to receive the highest amount of funds for their healthcare providers, according to a state-by-state breakdown. Over 600 providers in California will gain nearly $300 million, 333 providers in Texas will collect $154 million, and 313 New York providers will receive $127 million.

HHS announced the Phase 4 payments in September 2021, with plans to provide $17 billion in general distributions and $8.5 billion in American Rescue Plan payments for rural providers.

Phase 4 payments are equity-focused, prioritizing smaller providers that experienced significant revenue losses and offering bonus payments for providers that serve Medicaid, Children’s Health Insurance Program (CHIP), and Medicare beneficiaries, HHS said.

The department began distributing funds in December 2021, with around 69,000 providers receiving $9 billion. The second batch, distributed in January 2022, included $2 billion for approximately 7,600 providers, and the third round in February 2022 allocated $560 million to 4,100 providers.

Read the full story from RevCycle Intelligence

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