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.)

SBA releases new PPP forgiveness information

Originally published in the August 6, 2020 issue of MGMA’s Washington Connection. Reprinted with permission from MGMA.

The Small Business Administration (SBA) released new PPP FAQs that address eligible payroll and nonpayroll costs as well as loan forgiveness reductions. More specifically, SBA provides new information regarding costs incurred before the Covered Period and further details how to determine the amount of owner compensation eligible for loan forgiveness. As a reminder, absent further congressional action, the last day to apply for a PPP loan is Aug. 8, 2020.

Help #MGMAAdvocacy: Urge Congress to support physician practices during COVID-19 pandemic

Originally published in the August 6, 2020 issue of MGMA’s Washington Connection. Reprinted with permission from MGMA.

As Congress continues to negotiate the next COVID-19 package, it is imperative that they hear from physician practices. Use MGMA’s template letter to tell Congress that any final legislation must:

• Include direct financial support to medical groups experiencing an adverse economic impact from COVID-19;
• Continue telehealth flexibilities past the expiration of the public health emergency;
• Add flexibilities for Medicare accelerated and advance payments, such as eliminating interest rates and lowering recoupment amounts; and
• Amend the Paycheck Protection Program (PPP) to provide a more simplified process for borrowers seeking PPP loan forgiveness, including personal protective equipment as eligible covered the cost, and allow for 501(c)(6) nonprofit organizations to be eligible for PPP loans.

Thank you for joining our advocacy effort and supporting medical practices during the COVID-19 pandemic!

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.

MGMA advocates for additional relief for physician practices, ACOs

Last week, Democratic leadership in the U.S. House of Representatives introduced the ‘‘Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act,” which includes several provisions that directly pertain to medical practices. The legislation would make further amendments to the PPP, Medicare’s Advance Payment Program, and the Provider Relief Fund. While this bill is not expected to pass due to lack of bipartisan support, MGMA offered several key recommendations for consideration as Congress works to come to a bipartisan agreement.

Additionally, MGMA and other industry-leading associations have urged the Centers for Medicare & Medicaid Services (CMS) to provide flexibility for practices participating in a Medicare accountable care organization (ACO) and to protect them from potentially harmful losses created by the COVID-19 pandemic. Specifically, MGMA called on CMS to:

• Adopt a policy to give ACOs an option to be protected from losses in exchange for a reduced shared savings rate, no less than 40%;
• Extend the current June 1 Medicare Shared Savings Program (MSSP) deadline to voluntarily terminate to avoid financial losses to no earlier than Oct. 31;
• Reverse its decision to cancel the 2021 MSSP application cycle; and

Pay ACO shared savings payments and advanced alternative payment model bonuses as soon as possible

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.