DRCHSD CARES Act Reporting Guidance and FAQ Webinar
The purpose of this webinar is to share critical information hospitals need to be aware of for COVID-19 reporting. There will be a brief presentation on CARES Act Reporting and Q&A on the newly released guidance.
Reporting guidance highlights:
- The guidance establishes a two-step process to quantify expenses and lost revenues attributable to the coronavirus
- Quantify cost; then, if any Provider Relief Funds (PRF) remain
- Quantify lost revenue
- Reporting is done by the entity (TIN) that received the distribution. Subsidiaries that received general distributions can be reported on by the parent. Targeted distributions must be reported on by the receiving entity.
- The end of the time period over which “lost revenues” and expenses attributable to the coronavirus can be accumulated was changed from July 31, 2021, to June 30, 2021. Report is due July 31, 2021.
- Lost revenue is defined as the negative change in operating income from calendar year 2019 to calendar year 2020. This will potentially limit the amount of PRF funds many facilities will be able to justify. If an entity did not have operating income in 2019, the available “lost revenues” would be calculated as the amount needed to get to breakeven in 2020.
- The definition of expenses attributed to the coronavirus has been clarified/expanded to include G&A expenses such as mortgage/rent, insurance, utilities, etc.
- For the definition of what the funds can be used for, as far as facilities are concerned, the word “permanent”, i.e. “such as lease or purchase of permanent or temporary structures” has been added. Before it was only “temporary structures”.
- Coronavirus-related expenses used to claim PRF are not included in operating expenses in the operating income calculation for lost revenue.
- The 2019 and 2020 revenue and expense reporting necessary to calculate the negative change in operating income are required to be presented with quarterly breakdowns. Other non-financial information is also required to be reported with quarterly presentation.
For webinar connection information, please contact Program Coordinator Synneva Hackman.