HHS Stimulus Payments: How to calculate how much you will receive

by Ira Bedenbaugh

The week of April 20, 2020, the Department of Health and Human Services (HHS) announced that beginning April 24, 2020, the second round of stimulus payments would be distributed to healthcare providers to augment the first round of stimulus payments made April, 10 and April 17, 2020. If a healthcare provider did not receive a distribution in the first round, the provider will not be eligible for a stimulus payment in the second round.

To receive a second-round stimulus payment, healthcare providers are to complete an application process on HHS.gov which requires the Tax ID of the provider who received funding with the first stimulus, estimated revenue losses in March and April 2020 due to COVID and the provider’s “Gross Receipts or Sales” or “Program Service Revenue” as reported on their federal tax return.

To calculate how much a healthcare provider is to receive between the first and second stimulus payments, the provider should multiply their “Gross Receipts or Sales” or “Program Service Revenue” for 2018 by two percent.

HHS’s goal in the second round of stimulus payments is to augment the healthcare provider’s first round of stimulus payment so that the total amount of stimulus payments received is two percent of the healthcare provider’s 2018  “Gross Receipts or Sales” or “Program Service Revenue”.

To determine how much a healthcare provider should expect to receive in the second stimulus payment, the healthcare provider should multiply their 2018 “Gross Receipts or Sales” or “Program Service Revenue” by two percent then subtract what was received in the first stimulus payment.

HHS had previously stated that second round disbursements would be made within seven to ten days of a healthcare provider completing the application. HHS has updated the timeline to be within ten business of completing an application.

HHS continues to update its FAQ page, so healthcare providers are recommended to look to the page to determine if HHS has provided additional guidance.

The information provided in this communication is of a general nature and should not be considered professional advice.  You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change as a result of rapidly evolving legislative developments and government guidance.  

 

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