Behavioral health organizations across the country now have additional time to apply for critical federal support through the Provider Relief Fund. The U.S. Department of Health and Human Services (HHS) recently extended the application deadline from August 28 to September 13, giving providers a few extra weeks to secure financial assistance to help offset the challenges of the COVID-19 pandemic.
What is the Provider Relief Fund?
The Provider Relief Fund was established under the CARES Act to provide financial relief to healthcare providers affected by COVID-19. The program set aside $175 billion in grants for Medicare and Medicaid providers to reimburse eligible expenses and compensate for lost revenue.
This funding is designed to help ensure healthcare organizations—including hospitals, skilled nursing facilities, and behavioral health providers—can continue operating and delivering essential services despite pandemic-related financial pressures. Behavioral health providers, in particular, have been under strain due to increased demand for mental health and substance use care, alongside reductions in revenue.
Who Can Apply?
Behavioral health providers billing Medicare, Medicaid, Medicaid Managed Care, or CHIP are eligible to apply for additional funding. Providers can receive up to 2% of their patient care revenue in relief grants. Organizations that have already received a partial payment but haven’t reached the 2% cap are eligible for additional funding through the HHS Phase 2 General Distribution portal.
This includes providers who received initial payments based on Medicare revenue but were waiting for the Medicaid funding tranche. The extension ensures that these providers now have more time to submit applications and receive the full relief amount for which they qualify.
Why the Deadline Extension Matters
The extended deadline provides relief for providers who are managing the administrative complexities of the application process while simultaneously maintaining patient care during a public health crisis. Many organizations faced confusion regarding eligibility, required documentation, and navigating payments from multiple payers.
By extending the deadline, HHS ensures providers have the opportunity to assess prior payments, review patient care revenue, and submit accurate applications. This is particularly crucial for smaller or safety-net behavioral health providers that serve under- and uninsured populations and have been heavily impacted financially by the pandemic.
The Financial Impact of COVID-19 on Behavioral Health Providers
Behavioral health organizations have experienced significant revenue losses during the pandemic. Surveys from the National Council for Behavioral Health indicate that many providers have seen average revenue reductions of 20% or more, while simultaneously facing increased demand for mental health and substance use services.
These financial pressures make federal support through the Provider Relief Fund essential. Relief funds can cover critical expenses such as personal protective equipment (PPE), telehealth technology, staff salaries, and other costs directly tied to pandemic-related operations. The extended deadline ensures providers can still access the funds necessary to maintain services.
Steps to Apply for Relief Funds
Behavioral health providers seeking additional funding should submit an application through the HHS Phase 2 General Distribution portal. Applications require accurate information about patient care revenue, previous payments received, and other financial documentation.
Providers should take care to complete their applications thoroughly and accurately to avoid delays or complications. The goal is to secure the maximum available funding while remaining compliant with the fund’s terms and conditions.
Important Considerations for Providers
While the Provider Relief Fund provides grants that do not need to be repaid, providers must meet specific reporting requirements. Organizations receiving more than $10,000 must submit reports detailing how funds were used, usually by mid-February of the following year.
Funds must be used for COVID-19-related expenses and lost revenue. Failure to comply with these requirements could trigger audits or other oversight measures. Behavioral health providers should review the program’s guidelines to ensure proper allocation and documentation of funds.
Making the Most of Provider Relief Funding
Even relatively modest funding can make a significant difference for behavioral health providers. Organizations can use funds to maintain staffing levels, expand telehealth capabilities, purchase essential supplies, and continue offering critical services to patients.
Providers should review their finances to determine the maximum amount of funding they are eligible to receive under the 2% revenue cap. Those who have not yet received full funding should act quickly to submit their applications before the September 13 deadline.
Supporting Telehealth and Remote Services
The pandemic has accelerated the adoption of telehealth across behavioral health care. Many organizations have shifted to virtual therapy and consultations to continue serving patients while minimizing infection risk.
Funds from the Provider Relief Fund can be used to enhance telehealth infrastructure, including technology purchases, staff training, and patient support for accessing virtual services. These investments not only address immediate pandemic-related needs but also strengthen long-term care delivery for patients who benefit from remote behavioral health services.
Ensuring Access for Vulnerable Populations
Behavioral health providers play a vital role in serving under- and uninsured communities, which have been disproportionately affected by the pandemic. Applying for Provider Relief Funds allows organizations to maintain or expand services for these populations, ensuring access to essential mental health and substance use care.
The extended deadline gives providers additional time to plan how to allocate funds to maximize impact, support staff, and sustain patient care during a time of heightened demand.
Conclusion
The HHS extension of the Provider Relief Fund deadline offers behavioral health providers critical additional time to access financial support during the COVID-19 pandemic. The CARES Act-established fund is a vital resource for providers facing revenue losses, increased expenses, and growing demand for services.
Behavioral health organizations are encouraged to apply through the Phase 2 General Distribution portal to ensure they receive up to 2% of patient care revenue in relief funding. By accurately documenting expenses, complying with reporting requirements, and strategically using funds, providers can maintain operations, expand telehealth services, and continue delivering essential care to patients in need.
With the extended September 13 deadline, behavioral health providers have a clear opportunity to secure relief that can help stabilize operations, support staff, and meet the increasing demand for mental health and substance use treatment during and after the pandemic.
