Tomorrow at 1:00 p.m. (Thursday, August 13, 2020), Provider Healthcare Partners, along with The Health Group, LLC will be hosting a complimentary webinar on issues relating to home health and hospice mergers and acquisitions. The program will include discussion regarding issues resulting from the COVID-19 PHE, including Provider Relief Funding, PPP loans, accelerated payments, and changes in operations. You can register here.
ADDITIONAL APPLICATIONS FOR PROVIDER RELIEF FUNDING
The U.S. Department of Health and Human Services has announced that certain Medicare providers now have an opportunity to receive Provider Relief Fund payments. Specifically, this may be of interest to providers who were ineligible for previous distributions because they underwent a change in ownership in 2019 or 2020 and those providers who previously received Provider Relief Funds, but rejected and returned the funds. Eligible providers can only receive funding of up to 2% of total reported revenue from patient care services.
PAYROLL TAX HOLIDAY RAISES MORE QUESTIONS THAN ANSWERS
The President recently signed an Executive Order directing the Treasury Department to defer certain payroll tax deductions from certain employee paychecks beginning September 1, 2020 and continuing through December 31, 2020.
While this may mean bigger paychecks for employees, these deductions are only currently deferred. This means, barring additional actions, these deferred withholdings would eventually have to be repaid, without penalties and interest. Does this mean employees would have additional withholdings in 2021 to make-up the deferred 2020 withholdings? What about employees who terminate employment after September 1, 2020; could an employer be responsible for repayment? Will these deferrals eventually be forgiven?
The Executive Order does instruct the Treasury Department to examine how the government can forgive the tax payment.
It is imperative that employers be provided with additional direction regarding the actual implementation of the Executive Order and provide additional details regarding related taxability issues and repayment of obligations should such repayment ultimately be required. Healthcare providers, like other employers, need to carefully watch for further details expected before September 1, 2020.