CARES Act Provider Relief Fund: Immediate Infusion of $30 Billion into Healthcare System


Many provider groups are receiving unanticipated deposits into their bank accounts beginning April 10th, 2020 based on the CARES legislation that provides $100 billion in relief funds to healthcare groups and hospitals.  The acceptance of these funds comes with some reporting requirements which guidance has not been fully developed, and Kassouf will continue to assess.

The initial distribution is $30 billion and includes all groups that received Medicare fee-for-service (FFS) payments in 2019. 

  1. These are payments, not loans, and do not need to be repaid. 
    • They are disbursed via ACH account information on file with United Healthcare Group or CMS.  
    • They are tagged as “HHSPAYMENT” from Optum Bank.
    • Providers who normally receive hardcopy checks can expect their payment in the mail in a few weeks.
  1. The relief payments are made to the Medicare FFS Tax Identification Number (TIN) on file. 

The amount paid to a healthcare group is based on Medicare FFS payments in 2019 using this following formula:

(TIN’s 2019 Medicare FFS Payments/$484,000,000,000) x $30,000,000,000

  1. Within 30 days of receiving payment, the group must confirm receipt and agree to the Relief Fund Payment Terms and Conditions as defined by the Department of Health & Human Services:


The portal for healthcare groups to attest and agree will be available the week of April 13, 2020.

IMPORTANT NOTE:  If a TIN receives a total of more than $150,000 in funds from CARES Act, the Coronavirus Preparedness Response Supplement Appropriations Act, the Families First Coronavirus Response Act or any other Act Primarily making appropriations for the Coronavirus response and related activities, the group will be required to report quarterly to the Secretary of HHS and the Pandemic Response Accountability Committee.

IF a group receives payment and DOES NOT wish to comply with the Terms and Conditions, the provider must contact HHS within 30 days of receipt of payment.  HHS will provide appropriate contact information in the near future and further instructions.

The Accelerated / Advanced Medicare Payment Program is a different and separate relief program from this payment.  The Accelerated / Advanced Medicare Payment is a loan that must be re-paid, and healthcare groups must submit an application to their Medicare Administrative Contractor (MAC).

For the remaining $70 billion in relief funds for the healthcare community, the Administration is working on targeted distributions that will focus on providers in areas particularly impacted by the COVID-19 outbreak, rural providers, providers of services with lower shares of Medicare reimbursement or who predominantly serve the Medicaid population, and providers requesting reimbursement for the treatment of uninsured Americans.

For further assistance, please contact one of the Kassouf Healthcare Advisors listed below:

Margaret Cook, MBA, CMPE205.443.2532
Peri Cabral, CMPE205.443.2577
Janet Day, MBA, CMPE205.443.2582
Zack Bennett, CPA, PFS205.443.2533
Jonathan Kassouf, CPA, PFS205.443.2584
Wes Brown, CPA/ABV, CVA205.443.2536
Gerry Kassouf, CPA, PFS, CFP®, AEP®205.443.2550