HHS Begins Distribution of Phase 3 Provider Relief Funds

Last Updated: Dec 17, 2020

COVID FAQ 250x250The U.S. Department of Health and Human Services (HHS) announced on Dec. 16, 2020, that it has completed its review of applications to the Phase 3 Provider Relief Fund (PRF) program and it will begin distributing $24.5 billion to more than 70,000 providers immediately. Distributions will continue into January 2021.

Phase 3 allocates funds to applicants who reported lost revenues and net change in expenses due to the COVID-19 pandemic.

During application analysis, HHS realized the significant financial hardships facing providers and that the original $20 billion allocated would not meet the demand. HHS increased the funding allocation to $24.5 billion to cover 88 percent of provider losses.  

HHS noted that about 35,000 applicants will not receive a payment either because either they did not experience a change in revenues or net expenses due to COVID-19, or because they already received funds in previous phases that equaled or exceeded 88 percent of attributable losses.

Additional Resources

State-by-state breakdown on the first batch of Phase 3 payments

HHS Provider Relief Fund website

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