Vorys (Ohio/Texas): HHS CARES Act Relief Funding Guidance Addresses Provider Compliance Obligations, Highlights Potential FCA Risk

As discussed in our previous client alert, the Coronavirus Aid, Relief and Economic Security (CARES) Act authorized the distribution of billions of dollars in provider relief funding to mitigate the devastating effects of the COVID-19 pandemic on the health care industry. Although this funding offers much-needed relief for many providers, accepting it means certifying compliance with the related Terms and Conditions – including the requirement that provider relief payments will be used to reimburse the recipient only for “health care related expenses or lost revenues that are attributable to coronavirus.” Providers of all types have been grappling with the meaning of these phrases. If the interpretation of these concepts is later found to be inappropriate, health care providers could face substantial financial liability, including under the False Claims Act (FCA). MORE.

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