AAFCPAs would like to make FQHC clients aware, as part of the Massachusetts Economic Growth and Relief Act of 2022, $20,000,000 was allocated to the Health Safety Net (HSN) Trust Fund for community health centers or hospital-licensed health centers (health centers) participating in the MassHealth program. Payments were to be made to the health centers by December 31, 2022.
Funds were allocated to the health centers based on the total allowable reimbursable health services processed through HSN during fiscal year 2017.
There are some restrictions on the funding, including but not limited to, mitigating financial hardship due to declines in revenue or profits by supporting payroll costs and compensation of employees, business planning needs, implementing COVID-19 mitigation, and mitigating fiscal strain due to lost profits from the COVID-19 pandemic along with the increased costs of operations, workforce, and supplies.
Reporting requirements on the funds include the operating, non-operating, and total margin three months and twelve months after receipts of the funds. Additional metrics may be required at the request of the Massachusetts Executive Office of Health and Human Services.
Health centers have 12 months to spend the funds (through December 2023). Unspent funds at the end of the health center’s fiscal year should be shown as a conditional grant advance liability in accordance with ASC Topic 958.
AAFCPAs is available to help strategize proper spending of these funds.
If you have any questions, please contact Pauline Legor, CPA, MBA, at 774.512.4158, firstname.lastname@example.org; or your AAFCPAs Partner.