On Oct. 1, 2020, the U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), announced $20 billion in new relief funding for health care providers experiencing financial losses and changes in operating expenses caused by the coronavirus. Providers can begin applying for funds on Monday, Oct. 5, 2020.

Funding for this phase 3 general distribution was made possible through the bipartisan CARES Act and the Paycheck Protection Program and Health Care Enhancement Act, which allocated $175 billion in relief funds to hospitals and other healthcare providers. HHS has already issued over $100 billion in relief funding to providers through prior distributions.

According to the HHS announcement, the new phase 3 general distribution is designed to balance an equitable payment of 2 percent of annual revenue from patient care for all applicants plus an add-on payment to account for revenue losses and expenses attributable to COVID-19. Providers who already have received payments of approximately 2% of annual revenue from patient care may submit more information to become eligible for an additional payment. HRSA also has developed a list of the nation’s behavioral health providers now eligible for funding, which includes, for example, addiction counseling centers, mental health counselors, and psychiatrists.

The deadline to apply is Nov. 6, 2020. However, HHS is urging all eligible providers to apply early; do not wait until the last day or week of the application period.

Learn more from HHS about the CARES Act Provider Relief Fund.