Second Wave CARES Act Funding Update: Terms and Conditions

For those hospitals who received the second wave of CARES Act distribution that started April 24, there are new terms to consider. The U.S. Department of Health and Human Services (HHS) has added an additional page to the original 10-page terms and conditions for CARES Act grant funding. Here are some highlights to note:

  • This $20 billion second-wave funding is based on net revenue data. Providers must still submit their net revenue data starting April 24, even if CMS already used/assessed their cost report to divvy out funding.
  • The new terms and conditions (linked below) must be accepted within 30 days of receiving funds. This new contract differs from the first $30 billion CARES Act distribution terms in that:
    • HHS can publicly disclose any payments providers receive.
    • Providers must send their general revenue data from CY 2018 to HHS within 30 days of receiving payment.
    • Accepting funding means that providers acknowledge that payment disclosures "may allow some third parties to estimate the Recipient's gross receipts or sales, program service revenue, or other equivalent information."
  • According to HFMA, recipient legal options include:
    • Keeping the full funds while attesting and adhering to the full terms and conditions.
    • Declining the funds and returning them to HHS within 30 days.
    • Keeping the funds and attempting to return a modified attestation agreeing only to those terms and conditions specifically noted in the CARES Act itself.
  • If providers do not formally sign the agreement, after 30 days of keeping the funds, that will be viewed as accepting the terms and conditions, according to HHS.
  • Some organizations who are declining and returning funds include currently closed facilities who received distribution in the rush of first round $30 billion payouts.

See the new CARES Act hospital funding terms and conditions

To remain up-to-date on the latest healthcare and health IT industry changes amidst the COVID-19 pandemic, check back to the Mission Critical Change Resource Center.