Payment Methodology

Provider Relief Fund Phase 4 Payment Overview

In the interest of transparency, HRSA is publishing the methodology used to determine the payment amounts for Provider Relief Fund (PRF) Phase 4.

PRF Phase 4 consisted of two components:

  1. Base Payments: Approximately 75% of the funding was allocated to providers based on their reported changes in revenues and expenses for the period from July 1, 2020 to March 31, 2021. Smaller and medium-sized providers (based on annual net patient care revenues) received relatively higher percentages of their changes in revenues and expenses from this period.
  2. Bonus Payments: Approximately 25% of the funding was used to make bonus payments to providers based on the provider’s level of participation in Medicaid, the Children’s Health Insurance Program (CHIP), and Medicare.

American Rescue Plan (ARP) Rural Payment Overview

In the interest of transparency, HRSA is publishing the methodology used to determine the payment amounts for American Rescue Plan (ARP) Rural payments.

The $8.5 billion in ARP Rural payments were made to providers based on the amount and type of services they provide to Medicare, Medicaid, and Children’s Health Insurance Program (CHIP) patients who live in rural areas, as defined by the Federal Office of Rural Health Policy. In other words, some eligible providers who may not work in an area classified as rural, but who serve rural patients, may have received ARP Rural payments.

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