Behavioral health providers across the country are facing an urgent deadline to secure financial support through the Provider Relief Fund. With the application window closing on Friday, August 28, organizations that have not yet applied risk missing out on a critical source of funding designed to help them navigate the financial challenges caused by COVID-19.
The Provider Relief Fund was established as part of the CARES Act to provide Medicare and Medicaid providers with assistance during the coronavirus pandemic. This fund set aside $175 billion in grants to reimburse healthcare organizations for eligible expenses and lost revenue attributable to COVID-19. For behavioral health providers, these funds can be essential in maintaining operations during a period of unprecedented disruption.
Financial Impact of COVID-19 on Behavioral Health Providers
The pandemic has had a significant impact on behavioral health organizations. A June survey by the National Council for Behavioral Health found that, on average, organizations experienced a 24.3% loss in revenue during the COVID-19 emergency. In addition, more than 70% of respondents reported canceling, rescheduling, or turning away patients due to safety restrictions and other operational challenges.
These disruptions have left many behavioral health providers in urgent need of financial support. Even the modest funding available through the Provider Relief Fund can help cover essential expenses such as staff salaries, personal protective equipment, telehealth technology, and other costs directly related to managing the effects of the pandemic.
Who Is Eligible for Provider Relief Funds
Organizations that have yet to receive their full allocation are encouraged to apply through the U.S. Department of Health and Human Services Provider Relief Fund Phase 2 General Distribution portal. This includes Medicare-billing organizations that have received less than 2% of their patient care revenues in prior relief payments, as well as Medicaid, Medicaid Managed Care, and Children’s Health Insurance Program providers who have not yet reached the 2% cap.
Providers should carefully review eligibility criteria and ensure that they submit complete applications before the August 28 deadline. Timely action is essential to securing this support and preventing gaps in funding that could impact operations.
Terms and Reporting Requirements
While Provider Relief Fund payments are grants that do not need to be repaid, providers must comply with specific requirements. Providers who receive more than $10,000 and use the funds by the end of 2020 are required to report how the money was spent by February 15, 2021. Funds must be applied exclusively to COVID-19-related expenses and losses.
Failing to meet these requirements could result in audits or additional oversight. Matt Wolfe, a partner at the law firm Parker Poe, emphasized that HHS will analyze provider reports and may conduct audits to ensure compliance. Providers should maintain thorough documentation of all expenses covered by the funds to avoid future complications.
How Funds Can Support Behavioral Health Providers
Even modest funding from the Provider Relief Fund can make a significant difference for behavioral health providers. The funds can help organizations retain staff, implement telehealth solutions, purchase necessary safety equipment, and cover other costs related to managing patient care during the pandemic.
Securing these funds also allows providers to maintain long-term operational stability. Behavioral health organizations continue to face challenges such as fluctuating patient demand, increased mental health needs in the community, and staffing pressures. Access to relief funding can provide the resources needed to adapt to these challenges while continuing to deliver critical services.
Why Acting Now Is Critical
The application deadline for Phase 2 of the Provider Relief Fund is August 28. Providers who delay risk losing access to funding that could help sustain operations during the ongoing public health emergency. Applying promptly ensures that organizations can take full advantage of this financial lifeline.
Providers are encouraged to review eligibility requirements carefully, gather all necessary documentation, and submit applications through the HHS portal before the deadline. Taking these steps now can help secure funding that will support both organizational stability and patient care.
Compliance and Record-Keeping Tips
To ensure compliance with HHS requirements, providers should maintain detailed records of all expenditures covered by Provider Relief Fund payments. This includes tracking payroll expenses, telehealth technology costs, protective equipment purchases, and any other COVID-19-related expenses. Accurate documentation will help providers meet reporting requirements and reduce the risk of future audits.
Behavioral health providers should also review guidance from HHS on allowable uses of funds and reporting timelines. Understanding the rules and maintaining organized records will make the process of reporting easier and help ensure that the funds are used appropriately.
Long-Term Benefits of Provider Relief Funding
Beyond immediate financial support, the Provider Relief Fund can help behavioral health providers invest in sustainable solutions for ongoing operations. This includes expanding telehealth capabilities, retaining essential staff, and improving infrastructure to better serve patients during and after the pandemic.
Access to these funds allows organizations to continue delivering high-quality behavioral health services to communities in need. As mental health demands rise, maintaining financial stability is critical for providers to meet growing patient needs and adapt to ongoing challenges.
Conclusion
The Provider Relief Fund represents a time-sensitive opportunity for behavioral health providers to mitigate the financial impact of the COVID-19 pandemic. With the application deadline of August 28 approaching, providers must act quickly to secure funding, adhere to reporting requirements, and maintain accurate records of expenses.
This support is not only about sustaining operations but also about ensuring continued access to essential behavioral health services for patients. By applying now, providers can strengthen their financial position, implement long-term solutions, and continue to serve communities during a time of heightened need.
The clock is ticking. Behavioral health providers have only a few days left to apply for Provider Relief Fund grants. Acting immediately is the key to securing funding, maintaining operations, and supporting patients when they need care the most.
