HHS Claws Back $100 Million in Provider Pandemic Relief Money

The Department of Health and Human Services (HHS) is collecting $100 million in pandemic assistance money from providers who failed to comply with the agency’s reporting requirements, a Bloomberg Law report found.

On March 10, HHS’s Health Resources and Services Administration (HRSA) sent notices to providers who received more than $10,000 in relief money but weren’t compliant with reporting requirements, notifying them that they have 30 days to return the funds. Those who do not return the money will be excluded from future payments, the agency stated.

Funding recipients were required to “submit reports as the Secretary determines are needed to ensure compliance with conditions that are imposed on this Payment,” HHS said.

Any provider who received more than $10,000 had to report to HHS how they had spent the money by the end of September 2021. The agency pushed the initial deadline by 60 days, and also granted providers a 60-day grace period to come into compliance before beginning enforcement.

Approximately 10,000 providers who did not comply with reporting requirements are being asked to return provider relief by April 10, with amounts ranging from $30,000 to $250,000, according to the Medical Group Management Association (MGMA), a group that represents healthcare providers.

All providers who received the money had to agree to HRSA’s terms and conditions, but they could have accepted without signing off. If they retained a payment for more than 90 days without contacting HHS, the agency deemed them to have accepted the terms and conditions.

The money was allocated to recipients through the Provider Relief Fund, an HRSA-supported fund that was created to aid hospitals and other healthcare providers for financial losses and unanticipated costs incurred during the pandemic. The money was not meant to be repaid, HHS said.

Congress allocated $178 billion to the Provider Relief Fund, which was authorized as a part of the bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act. The legislation requires recipients to use the money only for lost revenue and expenses associated with COVID-19.

The funding was distributed in several waves, and the current clawbacks are being collected from those who received payments during the first round of funding. But many of the providers who accepted the funds may not have been aware that there were requirements attached to the money at all, especially those who received smaller payments, experts told Bloomberg.

Last week, HHS distributed the fourth round of Provider Relief Fund Phase 4 payments, allocating $413 million to more than 3,600 providers across the U.S.