Health Centers Awarded $1.3 Billion Through CARES Act

AAFCPAs would like to make community health center clients aware that on April 8, 2020, the Health Resources and Services Administration (HRSA) awarded $1.3 billion to the nation’s community health centers under the Health Center Coronavirus Aid, Relief, and Economic Security (CARES) Act Funding.  The distribution of funding was determined based on a $503,000 base, plus additional amounts based on number of patients and number of uninsured patients.

This funding is being awarded under the HRSA Health Center program catalogue of Federal domestic awards (CFDA) number of 93.224 and can be used to fund COVID-19-related costs going back to January 20, 2020.

Some key reporting provisions unique to this funding include:

1. Within 30 days, the health center must submit to HRSA a budget for expenditures allocated to this funding including budget narrative, list of equipment (if applicable), and any list of any minor alteration or renovation projects (projects less than $500K) being covered by the funding. During the award’s budget period, any re-budgeting in an amount of the lesser of 25% of the award or $250,000 must be approved by HRSA.
2. Consistent with existing HRSA funding, the health center must submit an FFR by July 30, 2021 (90 days after the budget period associated with this funding)
3. Within 90 days of the end of the funding’s budget period (4/1/2020 – 3/31/2021), the health center must submit SF-428 (tangible personal property report) and SF-428B (final attachment) and list of any property/equipment purchased with this funding in excess of $5,000.
4. The health center must provide quarterly reports via the Electronic Handbook describing the status of the activities and use of funds to detect coronavirus; prevent, diagnose, and treat COVID19; and/or maintain or increase health center capacity and staffing levels during a coronavirus-related public health emergency. You must also report the number of jobs created or retained as a result of the CARES funding.

Other Terms / Conditions:

Generally, the funding may not be used for construction activities or major alteration and renovation projects (projects more than $500,000), excluding costs of moveable equipment. For example, the funding cannot be used for site acquisition and exterior site work. In addition, these grant funds cannot be used for costs already covered by the health center’s existing 330 grant.

Generally, the funding must be used for detection of coronavirus; prevention, diagnosis, and treatment of COVID19; and/or maintaining or increasing health center capacity and staffing levels during a coronavirus-related public health emergency, such as:

• Ensuring patient and health center personnel safety and otherwise minimize COVID-19 exposure within the health center and in other locations where the health center personnel are delivering in-scope services on behalf of the health center;
• Addressing emergent COVID-19 issues to meet the health needs of the population served by the health center, including expanding the use of telehealth to supporting virtual assessment and monitoring of COVID-19 symptoms, and testing and laboratory services;
• Restoring, sustaining, and strengthening health center capacity and staffing levels, including hiring new, reemploying and/or contracting personnel, as well as supporting the reassignment of personnel resources;
• Patient and community education;
• Minor alteration and renovation;
• Equipment purchase, including health information technology and telehealth equipment, vehicles, and mobile medical units; and
• Purchase of supplies

Because of the emergency nature of the award, recipients may request from HRSA that certain procurement requirements be waived such as those regarding geographical preference and those regarding contracting with small/minority/women-owned businesses.

This funding is subject to additional standard terms and conditions that are consistent with existing health center 330 funding arrangements.

If you have questions please contact: Charlie Webb, CPA, CHFP at 774.512.4046, cwebb@aafcpa.com; or your AAFCPAs Partner.