McGuireWoods Chicago associate Timothy Fry was quoted in a
June 2, 2020, Healthcare Financial Management Association (HFMA) article on
the second round of federal relief funding for hospitals and providers under the
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Paycheck
Protection Program and Health Care Enhancement Act.
Practices hoping to get grants through the $20 billion second round of
general distribution payments needed to submit their applications by June 3 and
have been given more flexibility to agree to the federal agency’s terms and
conditions. Fry, a member of the firm’s healthcare practice, explained that HHS
allowed providers to apply for the second tranche of payments without first
agreeing to the agency’s terms and conditions for the first tranche.
“If anybody was on the fence, they are giving the incentive to go ahead and
get that application in,” Fry said.
Questions over how HHS defines healthcare-related expenses in calculating
lost revenue is just one area of uncertainty providers face in preparing their
applications, Fry said.
“Providers are in a real struggle,” he added. “People are looking for more
Fry also was quoted in a
June 4, 2020, Healthcare Dive piece on the issue. He explained that HHS’
funding formulas are based on data from prior years, further complicating
matters. “The industry is not static,” he said, noting that mergers could have
changed the way practices are structured.
Fry also co-authored a May 22, 2020, client alert on this topic for
McGuireWoods’ Coronavirus: Impact and Insight website.