Behavioral health providers across the United States now have additional time to apply for much-needed federal aid through the Provider Relief Fund. The U.S. Department of Health and Human Services (HHS) recently announced that the deadline for applications has been extended from Friday, August 28, to Sunday, September 13. This extension offers behavioral health organizations a critical opportunity to secure financial support amid the ongoing challenges of the COVID-19 pandemic.
Understanding the Provider Relief Fund
The Provider Relief Fund was established under the CARES Act, a federal stimulus package enacted in response to the COVID-19 public health emergency. The fund allocated $175 billion in relief grants to Medicare and Medicaid healthcare providers to reimburse them for eligible expenses and lost revenues caused by the pandemic.
The program was designed to ensure that healthcare organizations—including hospitals, skilled nursing facilities, and behavioral health providers—can continue to operate and serve patients despite the financial strains brought on by COVID-19. Behavioral health providers, in particular, have experienced significant challenges as the demand for mental health and substance use services has increased during the pandemic.
Who is Eligible for Provider Relief Funding?
Behavioral health organizations that bill Medicare, Medicaid, Medicaid Managed Care, or CHIP are eligible to apply for relief funding. Generally, providers can receive up to 2% of their patient care revenues in relief payments. For organizations that have already received a payment but have not yet reached the 2% cap, additional funding is available.
This includes behavioral health providers who may have received an initial Medicare-based payment but were waiting for the Medicaid tranche. By extending the deadline, HHS ensures that more providers have the opportunity to access the funding they need to maintain operations and continue delivering care to patients.
Why the Extension Matters
The extension to September 13 provides much-needed breathing room for behavioral health providers who are navigating complex administrative requirements while managing patient care during the pandemic. Many organizations faced confusion regarding eligibility and the application process, particularly those that bill multiple payers or had already received partial payments.
The extension allows providers to review their revenue, assess prior payments, and submit accurate applications to receive the full amount of funding they are entitled to. This is particularly important for smaller behavioral health organizations or safety-net providers that serve under- and uninsured populations and have been hit hardest by revenue losses.
Impact of COVID-19 on Behavioral Health Providers
Behavioral health providers have experienced significant financial strain during the COVID-19 crisis. According to surveys conducted by the National Council for Behavioral Health, many organizations have seen revenue reductions averaging 20% or more. At the same time, the demand for mental health and substance use services has surged, creating a challenging environment for providers to maintain operations while meeting patient needs.
The combination of decreased revenue and increased demand makes federal support through the Provider Relief Fund critical. Funds can help organizations cover expenses such as personal protective equipment (PPE), technology for telehealth services, staff salaries, and other COVID-19-related costs. By extending the application deadline, HHS ensures providers have a fair opportunity to secure this support.
How to Apply for Provider Relief Funds
Behavioral health providers seeking additional funding must submit an application through the HHS Provider Relief Fund Phase 2 General Distribution portal. The process requires organizations to provide information about patient care revenue, prior payments received, and other relevant financial data.
Providers should ensure that all documentation is accurate and complete to avoid delays or complications in receiving funds. The goal is to maximize the amount of support available while ensuring compliance with the terms and conditions of the relief program.
Key Considerations for Providers
While the Provider Relief Fund provides grants that do not have to be repaid, providers must adhere to certain reporting requirements to maintain compliance. For example, organizations receiving more than $10,000 must report how the funds were used by a specified deadline, typically by mid-February of the following year. Funds must be used for COVID-19-related expenses and losses, including lost revenue and increased costs associated with the pandemic.
Failure to comply with these requirements could result in audits or other oversight measures. Behavioral health providers should familiarize themselves with the terms and conditions of the funding to ensure proper use and documentation.
Maximizing the Benefit of Relief Funds
For behavioral health providers, even a relatively small amount of additional funding can make a significant difference. Organizations can use the funds to maintain staffing levels, expand telehealth services, purchase necessary supplies, and continue delivering essential mental health and substance use treatment to their communities.
Providers are encouraged to carefully review their financials and determine the maximum funding available under the 2% patient care revenue cap. Those who have not yet received the full amount should act promptly to submit applications before the September 13 deadline.
The Role of Telehealth and Remote Services
The COVID-19 pandemic has accelerated the adoption of telehealth services in behavioral health care. Many providers have shifted to video-based therapy and remote consultations to continue serving patients while minimizing the risk of viral transmission.
Funds from the Provider Relief Fund can help organizations enhance their telehealth capabilities by purchasing technology, training staff, and supporting patients with access to devices and internet connectivity. These investments not only address immediate pandemic-related needs but also strengthen the long-term infrastructure for virtual behavioral health care.
Ensuring Access for Vulnerable Populations
Behavioral health providers play a critical role in serving under- and uninsured populations, who are often disproportionately affected by mental health and substance use challenges. By applying for Provider Relief Funds, organizations can maintain or expand services for these vulnerable groups, ensuring continuity of care during a period of heightened need.
The extended deadline allows providers to carefully plan how to allocate funds to maximize impact, support staffing, and meet the needs of their communities.
Conclusion
The extension of the Provider Relief Fund application deadline by HHS offers behavioral health providers additional time to secure vital financial support. The CARES Act-established fund is a lifeline for organizations facing revenue losses, increased costs, and rising demand for mental health and substance use services amid the COVID-19 pandemic.
Behavioral health providers are encouraged to apply for funding through the Phase 2 General Distribution portal, ensuring they receive up to 2% of patient care revenues in relief grants. By carefully documenting expenses, adhering to reporting requirements, and strategically utilizing funds, providers can maintain operations, expand telehealth services, and continue delivering critical care to patients in need.
With the extended deadline of September 13, organizations have the opportunity to access relief that can help stabilize operations, support staff, and meet the growing demand for behavioral health services during and beyond the pandemic. Acting promptly ensures that providers can take full advantage of this federal support and continue their essential work in communities across the nation.
