What Does the CARES Act Mean for Your Practice?
The CARES Act was signed into law on Friday, March 27, 2020. This act provides $2 trillion in stimulus and financial assistance for COVID-19. This act includes direct payments to Americans suffering financially, unemployment funding increases, funding for hospitals and healthcare systems, funding for local governments and many others. Here’s what this act means for your small medical practice. * Medicare is continuing to relax telehealth service requirements in an effort to provide more virtual care during this pandemic. * The bill has allocated funds for the creation and distribution of personal protective equipment (PPE) and medical supplies, such as ventilators. * The CARES Act is providing $377 Billion in relief for Small Businesses (500 or fewer employees). This includes $10 Billion in emergency grants (up to $10,000 per business) and $350 Billion in low interest loans (subject to forgiveness, as noted in the next bullet) and $17 Billion in payments on existing loans. * Paycheck Protection Program - this provides 8 weeks of cash flow assistance through federally guaranteed loans to small employers. Employers who maintain their payroll are eligible for loan forgiveness for payroll costs, interest/mortgage obligations, rent, and utilities. This loan period is between Feb 15-June 30. * Deferred payment of employer payroll taxes - half are due by Dec. 31, 2021 and the rest by Dec. 31, 2022. This bill is particularly aimed to help small business cover current operating costs, maintain employees payroll and provide supplies and services for physicians to help treat the COVID-19 pandemic. These are great steps to try to help the small physician practice during this scary time and Nolan Health Care Solutions is here to help you take advantage of these resources.