The Coronavirus Aid, Relief and Economic Security Act (CARES Act) has designated $100 billion to reimburse eligible providers for health care–related expenses or lost revenue attributable to COVID-19. This includes lost revenues/profits attributed to lost or cancelled elective procedures as well as extraordinary expenses related to COVID19 responses. The law contemplates funding not only losses as of this date but future expenses as well. Presently, this fund is administered by the Assistant Secretary for Preparedness and Response (ASPR) under the U.S. Department of Health and Human Services (HHS).
Currently, there is little or no guidance on whether the funds are to be allocated among regions, practice areas or types of institutions. At a minimum, an application for payment must include a statement of the provider’s need and its taxpayer identification number. The Secretary has yet to promulgate regulations, application forms, the standards for calculating losses and other required documentation. These will no doubt provide many details which are unspecified in the CARES Act as of the date of this posting. In the meantime, health care providers would be advised to gather data on the expenses and losses they have incurred due to the Coronavirus and the expenses they anticipate incurring so they can be submitted as soon as guidance is received from the Secretary.
Mr. David has over 15 year of experience in calculating commercial damages and lost profits. Chris and his team of analysts have developed a financial model to calculate the losses for hospital departments, medical clinics and other outpatient facilities related to COVID-19.
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The information provided herein is of a general nature and cannot be substituted for an actual fair market valuation opinion, in which specialized knowledge is applied to a particular circumstance. Therefore, nothing in this paper should be construed to offer or render a valuation or legal advice and neither Chris David or HealthValue Group can take any responsibility for an attempt to use or adopt the information or disinformation presented herein.