The latest round of COVID-19 provider assistance brings audit risk to new merger
Providers who have received at least $10,000 in payments from the most recent rounds of provider relief funds expenditure The Ministry of Health and Human Services said on Tuesday that if they engage in mergers or acquisitions, they may face greater audit risks.
The updated terms and conditions apply to providers who receive funds from the initial distribution last month.
HHS stated that the update aims to “ensure the use of relief funds to address the financial impact of COVID-19”.
“Suppliers reporting mergers or acquisitions may be more likely to be audited to ensure that funds are used compliantly,” HHS said in a press release.
The new rules will apply to providers who receive at least US$10,000 from US$8.5 billion Capital pool HHS began distributing it to providers serving rural patients last month. It will also apply to the agency’s spending this week for other vendors from another $17 billion pool of funds.
These changes were found in an article published by the New York Times earlier this year that large hospital chains received Provider relief funds are acquiring the practices of competitors and doctors.
The Biden administration has Indicated Fearing that integration will lead to higher healthcare costs, it will strengthen the review of mergers and acquisitions in the healthcare industry.
The U.S. Department of Health and Human Services announced on Thursday that it will provide $9 billion in rewards from a pool of $17 billion for healthcare providers who have suffered loss of income and expenditure due to the pandemic.
According to the press release, the average payment for large suppliers was US$1.7 million, the average payment for medium-sized suppliers was US$289,000, and the average payment for small suppliers was US$58,000.
Approximately 75% of the funds will be allocated based on costs and the reduction in revenue between July 1, 2020 and March 31, 2021, and smaller suppliers will receive a higher percentage of loss and expense compensation.
In the latest round of financing announced on Tuesday, more than 69,000 medical institutions in 50 states across the United States will receive assistance, and payments will be released later this week.
HHS said the funds can be used to recruit and retain employees, purchase masks and other supplies, modern facilities, or other COVID-19-related activities.
HHS said that based on the funding announced on Tuesday, approximately $8 billion will be awarded to suppliers, and the next payment will be announced next year.