NCMSF Financial Recovery Program Payout Increases

Independent practices eligible for state funds through the NCMS Foundation administered Financial Recovery Program (FRP), now may receive an increased maximum payout of $160,000 for tier 1 practices and $120,000 for tier 2 practices.

Learn more about practice eligibility requirements and what COVID-19 related expenses qualify for reimbursement at the FRP webpage here. The deadline to apply for these funds is Nov. 30, so please act today.

The NCMS Foundation has been charged by the NC General Assembly with administering this program and is required to distribute all the funds to eligible practices by the end of the year. As applications have been received, the payout has been adjusted to ensure all funds are equitably dispersed to those in need. Please spread the word to colleagues who may qualify.

The NCMS lobbying team worked closely with the NC Academy of Family Physicians, the NC Pediatric Society, the NC College of Emergency Physicians, the NC Association of Physician Assistants, the NC Obstetrics and Gynecology Society and the NC Dermatology Association in order to secure the state appropriation that funds the FRP.

Don’t forget PPE! The NCMS Foundation also received a $5 million appropriation to purchase and distribute personal protective equipment (PPE) to independent practices.

Even if you currently have adequate supplies, it makes sense to stockpile these products for future needs. Learn more and order your PPE today by clicking here.

Apply Here

Be prepared with:

• Practice NPI
• Provider NPI(s)
• Receipts / Invoices of allowable expenses
• Bank account information

You may not claim reimbursement for expenses already paid for through the federal Paycheck Protection Program (PPP) or CARES Act Provider Relief Program.

Eligible expenditures include, but are not limited to, payment for:

• Clinical staff Covid-19 specific expenses – payroll and benefits
• Administrative staff expenses (only for hours dedicated to COVID-19)
• Telehealth equipment cost- computers, cameras, hotspots, etc.
• Infection control costs- PPE, thermometers, cleaning/disinfecting/sanitizing cost, etc.
• Renovations/cost to accommodate social distancing or improving ventilation (plexiglass installation, HVAC updates, HEPA filters, etc.)

NCMSF Financial Recovery Program

The North Carolina Medical Society Foundation (NCMSF) is proud to oversee the state-funded Financial Recovery Program (FRP) to assist eligible practices throughout the state that are experiencing economic distress due to the pandemic.

Funding will be based on reimbursement for COVID-19-related expenses incurred between March 1 and Nov. 30, 2020.

Your practice is eligible if it falls in ALL of the following categories:

(1) Your practice is organized in accordance with North Carolina General Statutes Chapter 55B and registered with the North Carolina Medical Board as a professional corporation or professional limited liability company with the purpose of practicing medicine.

(2) Your practice currently provides or contracts for professional medical services.

(3) Your practice is not owned, managed or otherwise controlled by an entity defined in G.S. 131E-76(3), such as a health system.

(4) Your practice is not managed by a practice management company unless the practice management company is majority owned by North Carolina licensed physicians.

The deadline to apply is Nov. 30, 2020 with no exceptions.

Apply Here

Be prepared with:

• Practice NPI
• Provider NPI(s)
• Receipts / Invoices of allowable expenses
• Bank account information

You may not claim reimbursement for expenses already paid for through the federal Paycheck Protection Program (PPP) or CARES Act Provider Relief Program.

Eligible expenditures include, but are not limited to, payment for:

• Clinical staff Covid-19 specific expenses – payroll and benefits
• Administrative staff expenses (only for hours dedicated to COVID-19)
• Telehealth equipment cost- computers, cameras, hotspots, etc.
• Infection control costs- PPE, thermometers, cleaning/disinfecting/sanitizing cost, etc.
• Renovations/cost to accommodate social distancing or improving ventilation (plexiglass installation, HVAC updates, HEPA filters, etc.)

New PPP loan forgiveness applications released

The Small Business Administration released two Paycheck Protection Program (PPP) loan forgiveness applications: (1) A new, abbreviated application (Form EZ) and (2) a revised version of the original application. Form EZ is intended to be simpler to complete and is available to borrowers who meet one of three conditions. Both forms reflect the changes made to the PPP earlier this month, such as the extended covered period, the 60% payroll cost threshold, and the new safe harbor.

Congress passes critical PPP legislation

On Wednesday, the Senate succeeded in passing the House of Representatives’ bill that makes significant changes to the Paycheck Protection Program (PPP). The legislation would lower the Small Business Administration’s requirement that 75% of the loan be spent on payroll costs to qualify for forgiveness to 60%, extend the Covered Period to 24 weeks (up until Dec. 31, 2020), allow PPP borrowers to defer payroll tax payments, establish a minimum maturity term of five years for the balance remaining after forgiveness, and provide greater flexibility for borrowers to rehire employees that would otherwise reduce the amount forgiven. Once the President signs this legislation, the Paycheck Protection Program Flexibility Act of 2020 will become law.

New draft legislation to amend PPP loans

After hearing from constituents, Congress identified several issues with the PPP as currently implemented. As a result, a number of bills were introduced to amend the PPP to provide borrowers with more flexibility. One of these bills, the Paycheck Protection Flexibility Act, is scheduled for a vote in the House of Representatives today. MGMA supports this legislation, which would allow loan forgiveness for expenses beyond the eight-week covered period, eliminate the restriction that limits nonpayroll expenses to 25% of the loan amount, extend the two-year maximum loan term requirement, and allow PPP borrowers to utilize the payroll tax deferment incentive established in the Coronavirus Aid, Relief, and Economic Security Act.

SBA releases long-awaited PPP loan forgiveness guidance

The Small Business Administration (SBA) released new interim final rules on Paycheck Protection Program (PPP) loan forgiveness and loan review process. The loan forgiveness guidance mostly clarifies information already published in the PPP loan forgiveness application, such as FTE reduction exceptions, how to calculate employee salary/wage reductions, and when payroll/nonpayroll costs must be incurred and/or paid to be eligible for forgiveness. The SBA loan review procedure guidance describes the process by which SBA plans to undertake PPP loan reviews, and reiterates that a lender must issue a decision to SBA on loan forgiveness within 60 days. That decision can take the form of an approval (in whole or in part), a denial, or a denial without prejudice due to a pending SBA review of the loan.

SBA releases PPP loan forgiveness application

The Small Business Administration (SBA) released an application for Paycheck Protection Program (PPP) borrowers to submit to their lenders when seeking loan forgiveness. The application includes:

• Instructions on how to perform calculations for loan forgiveness;
• A list of documents borrowers must submit with the PPP loan forgiveness application;
• Confirmation that eligible nonpayroll costs still cannot exceed 25% of the total forgiveness amount;
• A newly created “Alternative Payroll Covered Period” for borrowers with biweekly (or more frequent) pay periods, which would allow the eight-week Covered Period to begin on the first day of the first pay period following PPP loan disbursement;
• Clarification that borrowers are generally eligible for forgiveness for payroll/nonpayroll costs paid and payroll costs incurred during the eight-week Covered Period (or Alternative Payroll Covered Period); and
• Additional FTE reduction exceptions.

While the application is helpful, it does not resolve all outstanding questions. MGMA hopes to see additional loan forgiveness guidance from SBA and will update membership on future developments.

Regulatory Alert: New MGMA Resources on Federal Financial Assistance

Originally published by MGMA on April 3, 2020
Reprinted with permission by MGMA

MGMA Government Affairs developed two new resources to inform medical groups of available financial assistance opportunities set forth in the CARES Act, which was signed into law on March 27, 2020. The resources are organized by medical group size because the U.S. Small Business Administration (SBA)’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) are only available to businesses with 500 employees or less. Please note that financial lenders should start accepting applications for PPP loans today, although it has been reported that not all lenders are prepared. In the meantime, SBA has supplied a sample application form for applicants to understand what will be requested of them.

Resource for medical groups with less than 500 employees: The CARES Act allocated money to fund the PPP loans and EIDLs. Loans under the PPP can be forgiven if the employer keeps their employees on the payroll for eight weeks after the loan origination date. EIDL loans are available to businesses who have suffered substantial economic injury. Small businesses who have applied for EIDL loans can receive an advance of $10,000 (“emergency EIDL grants”) within three days after the SBA receives their application. Please review MGMA’s resource for more details on both programs.

Resource for medical groups of all sizes: CMS’s Accelerated and Advance Payment Program (APP) and funds distributed from the “Public Health and Social Services Emergency Fund” are two available financial assistance options. The APP provides a quick mechanism for healthcare entities to obtain an accelerated cash flow, which is subject to repayment – funding through this mechanism can be accessed now. Little is known yet on how the $100 billion from the emergency fund will be distributed, but these funds are intended to reimburse eligible healthcare entities for healthcare related expenses and lost revenue stemming from COVID-19.