Financial Support & Resources
This page was updated on July 6, 2020 at 11:00 AM CST and will be updated as the situation develops.
Below is information on financial support & resources.
COVID-19: Federal Paycheck Protection Program & SBA Loans – New Updates for Physician Practices
Join MMA and legal experts from Dorsey & Whitney, LLP to discuss recent changes by Congress to the Payroll Protection Program (PPP) and Small Business Administration (SBA) loans. Earlier this month, MMA hosted an online discussion introducing potential financial protections for practices including the CARES Act (Coronavirus Aid, Relief, and Economic Security Act). A recording of the April 7 program is accessible below.
COVID-19: A Focus on Employment, Benefits, and Financial Assistance for Physician Clinics
Listen as the MMA and legal experts from Dorsey & Whitney, LLP, discuss the possibility of changes to your business (e.g. staff layoffs, furloughs and associated employee benefits) in light of the COVID-19 pandemic as well as the potential financial protections for practices including the CARES Act (Coronavirus Aid, Relief, and Economic Security Act).
Medicaid/CHIP Provider Relief Fund Payment Forms and Guidance
- HHS, through the Provider Relief Fund, expects to distribute $15 billion to eligible Medicaid and CHIP providers.
- The deadline to submit data is July 20.
- Physicians who participate in state Medicaid and CHIP programs and/or Medicaid and CHIP managed care organizations who have not yet received General Distribution funding may submit their annual patient revenue information to the enhanced Provider Relief Fund Portal to receive a distribution equal to at least 2 percent of reported gross revenues from patient care.
- To be eligible for this funding, health care providers must not have received payments from the $50 billion Provider Relief Fund General Distribution and either have directly billed their state Medicaid/CHIP programs or Medicaid managed care plans for healthcare-related services between January 1, 2018, to May 31, 2020.
- Application Instructions
- ENHANCED PROVIDER RELIEF FUND PORTAL
- On June 10, 2020, HHS will launch an enhanced Provider Relief Fund Payment Portal that will allow eligible Medicaid and CHIP providers to report their annual patient revenue, which will be used as a factor in determining their Provider Relief Fund payment.
- More information about eligibility and the application process is available here.
- For updated information and data on the Provider Relief Fund, visit their website.
Minnesota Department of Health COVID–19 Response Funding
- The legislature has approved $200 million for health care grants to support costs related to planning for, preparing for, or responding to an outbreak of COVID–19.
- The $150 million COVID–19 Health Care Response Grant will be granted through a Request for Proposal (RFP) process for costs related to planning for, preparing for, or responding to the COVID–19 outbreak. The $150 million Response Fund may also be used for administering the grants and for testing or facilities to provide treatment, isolation or quarantine. Instructions for this grant process should be available by the first week of April.
- The $50 million in a COVID–19 Response Grant for Short Term Emergency Funding was available on an emergency basis to provide cash flow relief to health care organizations to cover their highest priority needs. The application process for this grant closed March 25. The grant applications review process began Thursday, March 26 and will be completed as soon as possible.
- COVID–19 Response Funding Frequently Asked Questions
Patient Protection Program (PPP) Loan Forgiveness
On May 15, 2020, the SBA and Treasury Department released the Paycheck Protection Program (PPP) Application for borrowers to complete in order to receive PPP loan forgiveness. The loan forgiveness application includes information regarding costs eligible for forgiveness and instructions for forgiveness amount calculations. To apply for PPP loan forgiveness, the borrower must complete the application following the instructions and submit it to the lender that is servicing the PPP loan.
- The application and instructions include the following:
- Instructions for PPP Loan Forgiveness Calculation Form;
- The PPP Loan Forgiveness Calculation Form and required certifications;
- Instructions for PPP Schedule A;
- PPP Schedule A;
- Instructions for PPP Schedule A Worksheet;
- The PPP Schedule A Worksheet;
- A list of documents that each borrower must submit with its PPP loan forgiveness application;
- A list of documents that each borrower must maintain (but is not required to submit); and
- The (optional) PPP Borrower Demographic Information Form.
The SBA has indicated that regulations and additional guidance for borrowers on completing the forgiveness form and lender responsibilities regarding loan forgiveness will be issued soon.
SBA Disaster Loans for Minnesota Small Businesses Impacted by COVID 19
- Economic Injury Disaster Loans: The Coronavirus Aid, Relief, and Economic Security Act authorizes $10 billion for an “emergency” Economic Injury Disaster Loan (EIDL) to eligible entities with not more than 500 employees. Click here to begin the application. This Emergency loan program allows an eligible entity that has applied for an EIDL loan to request an advance on that loan, of not more than $10,000, which the SBA must distribute within 3 days. Advance payments may be used for providing paid sick leave to employees, maintaining payroll, meeting increased costs to obtain materials, making rent or mortgage payments, and repaying obligations that cannot be met due to revenue losses. If a small business receives a Payroll Protection Program loan that is forgiven, any advance amount received under the emergency EIDL would be subtracted from the amount forgiven in the Payroll Protection Program loan. (Section 1110)
- Small business loans. Small businesses in any Minnesota county, including physician practices with no more than 500 employees, are eligible to apply for the Small Business Administration’s (SBA) section 7(a) Payroll Protection Program. This allows a small business to apply to an SBA-approved lender for a loan of up to 250 percent of the business’ average monthly payroll costs to cover eight weeks of payroll as well as help with other expenses like rent, mortgage payments, and utilities. The maximum loan amount is the lesser of $10,000,000 and an amount calculated based on a payroll formula that essentially equals 2.5x the average total monthly payroll cost incurred in the one-year period before the loan is made. Sole-proprietors, independent contractors, and other self-employed individuals are eligible. There are some restrictions on including salaries for people making more than $100,000. A loan can be forgiven based on maintaining employee and salary levels. For any portion of the loan that is not forgiven, the terms include a maximum term of 10 years, a maximum interest rate of four percent.
- Small businesses and organizations will be able to apply if they were harmed by COVID-19 between February 15, 2020 and June 30, 2020. This program is retroactive to February 15, 2020 and are available through June 30, 2020.
- Click here to begin the application.
Provider Tax Filing Exemptions
- On March 20, the Minnesota Department of Revenue announced that it is extending the deadline for 2019 MinnesotaCare annual returns for those who request it due to the disruption caused by the COVID-19 pandemic. Originally due March 16, the new deadline is May 15 for those who request a filing extension before April 15.
- The MMA sent a request to Gov. Walz on March 26 requesting an interest- and penalty-free 60-day automatic extension on MinnesotaCare tax filings.
- The MMA requested that this extension be guaranteed, rather than requested, for all filers.
- The MMA also urged Walz to grant a similar 60-day extension for 2020 first quarter MinnesotaCare tax payments due April 15, 2020.
American Medical Association (AMA)
Centers for Medicare & Medicaid Services (CMS)
- Accelerated and Advanced Payments for Medicare Providers
- UPDATE** On April 26, 2020, CMS announced it will not accept new applications for the Advance Payment Program from physicians and it will re-evaluate all pending and new applications for Accelerated Payments. Funding will continue to be available to hospitals and other healthcare providers on the front lines of the coronavirus response primarily from the Provider Relief Fund.
- CMS has expanded the Accelerated and Advance Payment Program for financial hardship relief for Medicare providers during the COVID-19 pandemic. Most qualified providers and suppliers will be able to request up to 100% of the Medicare payment amount for a three-month period. Refer to the CMS Accelerated Advance Payment Fact Sheet for additional details. National Government Services plans to schedule at least three chatrooms to share additional information. The only chat room scheduled so far will take place on Thursday, April 9, from noon-1p.m. CST.
- To register go to: ngsmedicare.com.
- Log-in as a guest if you are not already registered. Then, go to the Education tab, then select “Let’s Chat about Accelerated Payment Process.”