On September 10, 2021, the U.S Department of Health and Human Services (HHS) announced the availability of $25.5 billion in funding to help healthcare settings offset certain incurred COVID-19 costs. This additional funding is the first substantial funding program for Long Term Care since Phase 3 of the program in December 2020.
The expanded monetary relief provides healthcare settings, including certain Senior Living settings, funding opportunities to help communities offset expenses incurred from the ongoing impact of the pandemic. We’ve compiled the key points you need to know regarding this new announcement as well as the application due October 26, 2021. Read below to learn how you can access, receive and use the American Rescue Plan Act (ARP) Phase 4 funds throughout your community.
What relief is available for Senior Living?
In the combined application that opened on September 29, 2021, Senior Living facilities have the availability of additional relief with:
- $17 billion in the Provider Relief Fund (PRF) Phase 4 for care providers that can provide documentable pandemic-related revenue loss and expenses.
- $8.5 billion from the American Rescue Plan (ARP) for rural healthcare providers that care for Medicaid or Medicaid patients. To help determine if your community qualifies for “rural” relief, you can use the HRSA’s Rural Health Grants Analyzer online tool.
How will payments be calculated?
Striving to follow a commitment of equity, PRF Phase 4 payments are intended to support the communities most in need and will consider lost revenues and expenditures between July 1, 2020 and March 21, 2021, with a focus on reimbursing smaller providers at a higher rate than larger providers. There is also potential for bonus payments based on the number of service providers that care for Medicaid or Medicare patients.
Additional payment funding key points include:
- Large communities will receive a minimum payment based on percentage of lost revenue and COVID-related expenses.
- Medium and small communities will receive a base payment plus a supplement, with supplement priority going to small providers.
What community types are eligible?
Generally speaking, Skilled Nursing, Long Term Care and nursing home communities are eligible for this funding. State-licensed and certified Assisted Living communities are also typically eligible and specifically mentioned in the Frequently Asked Questions for Phase 4.
How can these grants for Senior Living facilities be used?
The additional funds provide relief to Senior Living communities that have been forced to operate on tight budgets while caring for America’s seniors, the population impacted most by the COVID-19 pandemic. Funds from Phase 4 could be used in various ways, including:
- Personal protective equipment (PPE), such as masks, gowns and face protection
- Infection control, disinfection and protection products
- Staffing support for overtime or bonus pay
- Any other offset expenses
This funding opportunity can help your community continue to provide the highest quality of care possible for your residents.
What’s coming next for Senior Living funding?
As Senior Living funding becomes available, we want to keep you informed and support your communities. We are continually monitoring potential state and local programs that could benefit Senior Living communities and will include updates on our COVID-19 Resources page when information becomes available.
We are with you in this fight. Direct Supply will continue its efforts in Washington to help ensure Senior Living has the resources it needs to continue caring for seniors – now and in the future.
The materials, comments and other information offered herein are intended to provide general information and are not legal advice. Funding details may change and this blog may not reflect revised requirements, restrictions and/or timelines. Direct Supply is not endorsed by or affiliated with any funding agency, and does not guarantee eligibility under any particular program. Contact your legal and financial teams to discuss how these programs may apply to your particular facility.
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