Federal coronavirus aid packages such as the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security (CARES) Act offer financial support and tools for medical staffing groups and their healthcare employees.
We outline two key programs of particular importance to medical groups below.
The Paycheck Protection Program (authorized by the CARES Act)
Small Business Disaster Relief loans are available to help medical groups overcome loss of income due to COVID-19. Specifically, the CARES Act provides $349 billion for the U.S. Small Business Association to administer the Paycheck Protection Program (PPP).
The PPP provides loans of up to $10 million to small businesses that have been harmed by the coronavirus pandemic, including medical groups and private practices. PPP loans may be used to cover payroll costs, healthcare benefits, mortgage interest payments, rent, utilities, and other interest payments. The only requirement is that you maintain your workforce and payroll at least 75% of pre-pandemic levels.
The cost of eight weeks of payroll and operating expenses will be forgiven from the loan.
Example: if your business takes out a $5 million loan and the cost of payroll and operating expenses for eight weeks is $4 million, you would only have to repay the remaining $1 million.
The interest rate on PPP loans is 0.5% and the loan will mature after 2 years.
You can apply for a PPP loan through a local SBA-approved lender. You can find a list of SBA-approved lenders in Virginia here.
Lenders may begin processing applications as soon as April 3 and will be available through June 30. The application is available here.
For more about Economic Injury Disaster loans, visit the U.S. Small Business Administration’s COVID-19 Business Guidance and Loan Resources page.
CMS Advance Payments
Private groups can apply for advance payments from Medicare. Hospital systems are already starting to receive payments through this program.
CMS is expanding the program for all Medicare providers during the COVID-19 public health emergency. The payments can be requested by hospitals, doctors, durable medical equipment suppliers and other Medicare Part A and Part B providers and suppliers.
To qualify for accelerated or advance payments, the provider or supplier must:
have billed Medicare for claims within 180 days immediately prior to the date of signature on the provider's/ supplier's request form
not be in bankruptcy
not be under active medical review or program integrity investigation
not have any outstanding delinquent Medicare overpayments
Physicians will have 210 days from the date of the accelerated or advance payment was made to repay the balance.
Questions? Email Sarah Marshall, VACEP Executive Director, at sarah@vacep.org.
